Islamabad: The International Monetary Fund (IMF) has suggested amendments in some of the federal government’s administrative policies and structures before it approves and releases the first tranche of a USD 500 million loan, according to a news source.
Reportedly, Pakistan has been advised by the IMF to review the revenue collection method under the National Finance Commission (NFC) award, specifically the increase in the federal government’s share. Additionally, the IMF recommended tax integration.
Moreover, Pakistan will need to reassure the IMF about the rollover of financial aid promised by its allies. Meeting this prerequisite should not be a problem as its allies have extended strong support to the country.
The executive board of the IMF will be sitting down today (3rd July) to finalise the approval of the USD 6 billion loan. Sources say that an agreement has already been reached at the staff level between the organisation and Pakistan. Additionally, the government has said that it has met the conditions required for the approval of a loan from the IMF.
There is a high chance for the loan to be approved, but Pakistan has still made alternative arrangements in case the approval is delayed to the next board meeting. If Pakistan is able to procure this loan from the IMF, the government will also be able to acquire another USD 3 billion in aid and financing from the World Bank and Asian Development Bank to alleviate its current financial crisis.
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