ISLAMABAD: The International Monetary Fund (IMF) has allowed Pakistan to borrow Rs1.25 trillion from local banks, according to media reports. The decision follows recent policy negotiations between Pakistani officials and IMF representatives.
As part of its economic strategy, Islamabad has devised a six-year roadmap to address the Rs2.4 trillion circular debt in the power sector. The government plans to use bank loans and surcharges to repay Rs1.5 trillion of this debt while also expecting to save Rs463 billion through renegotiations with independent power producers.
During a recent visit to Pakistan, an IMF delegation assured Finance Minister Muhammad Aurangzeb of the organization’s continued support for the country’s economic stability.
On March 11, the government informed the IMF that seven state-owned enterprises, including Pakistan International Airlines (PIA), are set for privatization as part of the $7 billion loan program.
Additionally, on March 7, the IMF rejected Pakistan’s proposal to eliminate the Goods and Services Tax (GST) on electricity bills during economic review negotiations.
