February 26, 2023
1 min read

Pakistan succumbs to IMF pressure, mulls rate hikes

Th reports said that Pakistan has agreed to raise its policy rate by 2 per cent. It currently stands at 17 per cent…reports Asian Lite News

As the economic crisis in Pakistan worsens with depleting foreign currency reserves barely enough to pay for three weeks worth of imports, the country agreed on Saturday before the International Monetary Fund (IMF) to increase the policy rate by 2 per cent — one of the conditions to secure the Fund’s bailout package, media reports said.

Virtual negotiations with the IMF continued till late at night on Friday, as the officials from the international lender “painstakingly reviewed” every aspect, Geo News reported.

The sources said that Pakistan has agreed to raise its policy rate by 2 per cent. It currently stands at 17 per cent, the report said.

The sources also added that details regarding reforms in the power sector are being finalised and after the settlement, a staff-level agreement (SLA) will be signed.

The power sector has remained a hurdle so far as it has become one of the major stumbling blocs between Pakistan and the IMF.

Pakistan has also briefed the lender in detail on external financing till June, the sources said.

The sources said IMF is also holding talks with those countries in order to get assurance. There’s no discussion being held regarding the political situation of Pakistan, they added, Geo News reported.

Pakistani authorities have been negotiating with the IMF since early February over policy framework issues and are hoping to sign a staff-level agreement that will pave the way for more inflows from other bilateral and multilateral lenders.

Once the deal is signed, the lender will disburse a tranche of more than $1 billion from the $6.5 billion bailout agreed to in 2019, Geo News reported.

ALSO READ: Pakistan still addicted to the Fund’s tough love

Previous Story

US, Israel discuss Israeli-Palestinian conflict

Next Story

Economic crisis leaves Pakistan’s counter-terrorism plans in limbo

Previous Story

US, Israel discuss Israeli-Palestinian conflict

Next Story

Economic crisis leaves Pakistan’s counter-terrorism plans in limbo

Latest from -Top News

India-UAE Trade Ties in Focus

India and the UAE have discussed expanding bilateral trade, investment and business partnerships amid broader economic cooperation…reports Asian Lite News Desk India and the United Arab Emirates (UAE) discussed ways to further

India’s Diversity Gives Global Edge

British Indian businessman Karan Bilimoria has highlighted India’s diversity and demography as major strengths in the global economy…reports Asian Lite News Desk India’s diversity, demographic strength and expanding creative economy give the

Jaishankar to Visit Ghana

Jaishankar to visit Ghana to deepen ties in pharmaceuticals, agriculture…Asian Lite News Desk External Affairs Minister S Jaishankar will visit Ghana from October 6 to 7 at the invitation of Ghanaian Foreign

India-EU FTA expected by year-end

India and the European Union are hopeful of signing their proposed free trade agreement by the end of 2026. The pact could come into force next year…reports Asian Lite News Desk The

Modi, Swiss President hold talks in New Delhi

Prime Minister Narendra Modi and Swiss President Guy Parmelin held bilateral talks in New Delhi on Monday during Parmelin’s three-day State visit…reports Asian Lite News Desk Prime Minister Narendra Modi met Swiss
Go toTop

Don't Miss

Rising Militancy in Pakistan Threatens China’s $65bn CPEC Bet

A surge in militant attacks in Pakistan, particularly in Balochistan,

Uncertainty looms over Pakistan as IMF talks drag

Not only is inflation increasing but the huge quantum of