ISLAMABAD: Adviser to Prime Minister on Finance Shaukat Tarin revealed on Monday that Pakistan and the International Monetary Fund (IMF) have achieved a staff-level agreement, with the latter releasing approximately $1 billion of the $6 billion loan tranche.
Shaukat Tarin, speaking at a news conference with federal ministers, said the IMF had acknowledged an improvement in the country’s economy despite the COVID outbreak.
“Despite a worldwide epidemic, our march toward economic prosperity continues,” he remarked.
He also said that the World Bank and Asian Development Bank will share their resources with the nation after an agreement with the IMF.
The financial advisor said that adjustments are required in the electricity sector, as well as the State Bank of Pakistan and that steps are being taken to explain the central bank’s operating procedures.
“We are successfully executing the government’s reform plan, and the IMF has also requested the government to continue with its tax reforms,” he added, adding that they informed the Fund that tax collection remained Rs200 billion more than the objective in four months.
He also said that the IMF has praised the Ehsaas and Kamyab Jawan programs, and that a targeted subsidy for the disadvantaged elements of society is required.
Shaukat Tarin said that gasoline taxes need to be increased, adding that from today, LDA on fuel prices would have to be raised by Rs4 per liter per month.