What Pakistan has to do for the new loan program, IM chief told – Business & Economy

International Monetary Fund (IMF) Managing Director Kristalina Georgieva has placed demands before Pakistan for a new loan program.

The IMF chief confirmed that Pakistan is in discussions with the fund on a possible follow-up program to the $3 billion Standby Arrangement (SBA) of the last nine months.

However, he said that important issues are yet to be resolved.

Addressing an event held at the Atlantic Council think tank, the IMF chief said that Pakistan is successfully completing its current program with the IMF, the economy is performing slightly better and the currency is improving. Exchange reserves are now increasing.

“There is a commitment to continue on this path and the country is approaching the International Monetary Fund for a possible follow-up programme,” he said, pointing out key outstanding issues.

The IMF announcement also included terms of the new loan, according to which the scope of taxes under the new loan program will be expanded, taxes will be levied on low-tax paying sectors, and tax administration will be improved. The production cost of the energy sector will be recovered, the electricity transmission and distribution system will be improved, the management of the electricity distribution companies will be improved, transparency will be brought to the forex market, the government institutions suffering from losses will be improved. The governance system will be improved.