Govt agrees to implement IMF demands

Pakistan and the IMF will continue technical level talks until May 23

ISLAMABAD:

In a nerve-wracking development, the incumbent government, after much deliberations, has finally agreed to implement most of the demands of the International Monetary Fund (IMF), raising the possibility of the country “coming back on track economically” and receiving the next IMF loan tranche.

Talks between IMF and Pakistan continued for the second consecutive day. The Pakistani negotiation team includes Finance Secretary Hamed Yaqoob Sheikh, Federal Board of Revenue Chairman Asim Ahmad and State Bank of Pakistan’s acting Governor Dr Murtaza Syed.

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According to sources familiar with the matter, positive discussions were held with the IMF on increasing the amount and the period of the loan term.

The sources went on to add that the technical level talks were still going on between Pakistan and the IMF which will continue until May 23.

During the initial talks, Pakistan has agreed to accept most of the demands laid out by the IMF.

Pakistani authorities have agreed to cut subsidies and the timeframe for privatisation.