Pakistan accepts IMF conditions to secure $6.7 billion loan

Government of Pakistan took a sigh of relief when IMF Board of Directors approved a new $6.7billion loan facility. This will provide government a breathing space to meet its financial obligations. The foreign exchange reserves had fallen dangerously low at around $5 billion which is enough to cover 5 weeks of import.

To approve the loan IMF attached certain conditions related to expanding the tax net, reform in taxation laws and elimination of subsidiaries especially in power tariff and fuel prices. Finance Minister Ishaq Dar has assured the nation that poor man will not be affected by IMF condition. He promised that government will try to cover its revenue by bringing more people in the tax net. NADRA was asked to prepare profiles of people that are apparently evading taxes.

What Next?

Related Articles