Government of Pakistan and International Monetary Fund (IMF) are likely to sign bailout package deal on Friday as talks between both parties have entered in its concluding phase.
As per the details, the amount of loan is expected to be around 6.5 billion dollars for a duration of three years. The details further said that Pakistan and IMF holding the final round of talks today and the interest rate will be increased by almost 200-basis point.
The current account deficit of the country is predicted to remain around 8 billion dollars for the upcoming fiscal year of 2019-20, whereas the government of Pakistan has also decided to take the subsidies of Rs350 billion back.
The government of Pakistan had also shown its agreement to make the power sector regulator, the National Electric Power Regulatory Authority (NEPRA), an autonomous body and the inference of the government to take popular decisions would be minimized.
It has been learned that the government of Pakistan will likely to announce Rs750 billion’s new taxes and the working paper suggests in the upcoming budget. According to the details, the new budget by the federal government will likely to recommend taxes on gas, sugar, and other important commodities.