The head of the International Monetary Fund (IMF) indicates that an agreement with Pakistan is on the verge of being reached.
IMF Managing Director Kristalina Georgieva stated on Wednesday that a consensus with Pakistan regarding a review is imminent, as reported by News 24/7.
Pakistan received the initial $1.2 billion tranche from the International Monetary Fund (IMF) under the $3 billion Standby Arrangement (SBA) in July. A positive review could lead to the release of the second $710 million tranche in December.
In a conversation with Bloomberg, IMF chief Kristalina Georgieva remarked that despite challenging conditions, Pakistani authorities are close to finalizing a deal. She highlighted Pakistan's primary fiscal challenge, emphasizing that only 12 percent of the GDP is currently collected in taxes, a figure the IMF proposes to raise to 15 percent.
Earlier reports from the finance ministry sources suggested that talks with the IMF were progressing towards a favorable conclusion. Successful policy-level discussions on power subsidies were noted, with assurances from the caretaker government that basic electricity tariffs would remain unchanged until March.
Additionally, it was disclosed that the IMF had requested a temporary surcharge to alleviate circular debt, proposing an imposition of a 95-paisa surcharge per unit, according to insider sources.
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