Pakistan can get additional funds from Saudi Arabia under the Special Drawing Rights (SDR) quota, an international reserve asset created by the IMF, ProPakistani has learnt from reliable sources.
The sources further said that Pakistan and the International Monetary Fund (IMF) have held discussions in this regard.
According to sources, the government must fulfill the prerequisites expeditiously as the final decision on the program is yet to be made. The meeting of the IMF Executive Board is expected to be held in the last week of August. After the implementation of these conditions, the IMF Board will approve the agreement, sources said.
The conditions include the collection of general sales tax (GST) and petroleum development levy (PDL) on petroleum products. In addition, IMF has also demanded immediate implementation on the power sector reforms.
Pakistan has committed to resuming power sector reforms including, critically, the timely adjustment of power tariffs including for the delayed annual rebasing and quarterly adjustments, to improve the situation in the power sector and limit load shedding.
To improve governance and mitigate corruption, the Pakistani authorities committed to establishing a robust electronic asset declaration system and plan to undertake a comprehensive review of the anti-corruption institutions (including the National Accountability Bureau) to enhance their effectiveness in investigating and prosecuting corruption cases.
According to sources, the IMF has no objection to holding talks with any caretaker government in Pakistan and wants to stabilize the economy.
The International Monetary Fund (IMF) announced on Thursday that it has reached a staff-level agreement with Pakistan that would pave the way for the disbursement of $1.17 billion and also increased the total loan size to $7 billion, subject to approval by the IMF’s Executive Board.
