The long waited agreement between Pakistan and IMF is about to sign in few days after review of some important points including the new subsidy announcement of fuel by Pakistani government.
The current government and IMF have been discussing the agreement deal since February. Under the agreement $1.1 billion cash would be given to Pakistan for making its economy stable after a major downfall.
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Latest issue raised by IMF
Last week Prime Minister Shahbaz Shareef announced the fuel subsidy for people of Pakistan to lower the burden on poor people who have been hit hard by inflation. The inflation rate in February was recorded highest in last 50 years.
The Minister of Petroleum Musaddik Malik while talking to media said that Petroleum ministry had been given 6 weeks to finalize the fuel pricing plan. However, IMF representative said that government did not consulted about the fund of fuel pricing scheme.
IMF representative in Pakistan confirmed that deal between Pakistan and IMF would be sign in coming days once all the points will settled including the fuel scheme.
IMF would ask the government for more details about the fuel subsidy and how it would be managed with current financial records. The Foreign reserves Pakistan is taking currently would only be able to cover four weeks imports expenses.
Fiscal Measure by Government
The government of Pakistan had already implemented a lot of measures including energy prices raise, devaluing the rupee, uplifting the subsidies to manage the deal with IMF.
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Now, the ongoing agreement still needs some new measures to be implemented in Pakistan making it difficult for citizens to survive in this high inflation.