Pakistan and IMF are most likely to sign the three year bailout package deal today in Islamabad.
The IMF’s delegation arrived in Pakistan on April 26 and it’s been more than 11 days, they are meeting with government officials of Pakistan, including the provincial officials as well, and after a long haul of struggle, it looks as if the package is finally ready.
The loan from the IMF is expected to be around $6.5 Billion for a three year duration. The government has already accepted most of the terms of the IMF that are increasing gas and electricity prices throughout the whole country. According to the reports of the both sides, the interest rates will be increased by 200 points.
The new Governor of State Bank of Pakistan, Reza Baqir will sign the agreement from Pakistan’s behalf.
This package will cost Pakistan heavily as the dollar is on the rise, the currency is devalued routinely, and the electricity and gas are expected to get expensive.
The price of Petroleum Products is on the rise as seen, the petrol prices again hiked by 9 rupees during this month’s beginning.
Talks between Pakistan and IMF are more likely to conclude today on the Bailout Package.
It should be kept in mind that the Government has already submitted a working plan of the fiscal year 2019-2020 budget for the fund.
According to the sources at the Ministry of Finance, the Government will increase the gas and electricity prices in two phases.
In the upcoming budget to cbe announced within the next month or a two, the Government is more likely to announce Rs. 750 Billion new taxes.
In the upcoming Budget, which will be announced on June 11, Budget deficit would be restricted to 4.5 percent, and the revenue target would be around Rs. 5.3 Trillion for the Federal Board of Revenue.
Just because of the Pakistan and IMF Bailout package deal, the upcoming budget will impose additional taxes on sugar, gas and other essential commodities.