Pakistan Provides Assurance to IMF on Accelerating Privatization Program

News Desk1 month ago

The privatization of Pakistan International Airline (PIA) is moving along according to schedule, and attempts are being made to finish the process as quickly as possible, according to sources inside the finance ministry.

According to sources, a plan to privatize the power-sharing firms has also been created by the federal government. The list also includes the other state-owned businesses that are losing money, such as Pakistan Engineering Company, First Women Bank, and State Life Insurance.

Pakistan is expected to sign the staff-level agreement with the International Monetary Fund (IMF) the following week, according to sources that were disclosed yesterday.

According to the sources, Pakistan would be able to obtain the last $1.1 billion installment under the SBA Agreement upon finalizing a staff level agreement with the IMF.

They said that Pakistani officials had promised the international lender during the negotiations with the IMF to raise the country’s electricity tariffs starting on July 1 and to impose monthly, quarterly, and annual fuel adjustments on customers in order to recoup costs.

According to reports, the Pakistani government had already denied the IMF’s request for a review of the National Finance Commission (NFC) Award.

Read more: Shehbaz Slams PTI Founder Anti-National Stance in IMF Correspondence

During the second review meetings under the $3 billion loan program under SBA, the IMF had requested that Islamabad reconsider the NFC Award with the provinces, citing the lack of federal finances.

For the second evaluation of the SBA loan program, the IMF mission is presently in Pakistan.

While Pakistan managed to win a $3 billion IMF stand-by deal last summer, the nation is nevertheless beset by record inflation, depreciating currency, and declining foreign reserves.

Leave a Reply

Your email address will not be published.