NEW YORK: The International Monetary Fund (IMF) has issued a $1 billion loan to Pakistan, warning of rising inflation in the country.
The Executive Board of the International Monetary Fund, after completing the sixth review under the Extended Fund Facility, approved the release of the installment for Pakistan.
According to the IMF, inflation and current account deficit are rising in Pakistan and the country’s GDP is expected to be 4 percent. The International Monetary Fund (IMF) said that inflation is on the rise in Pakistan due to the current account deficit and declining pressure on the exchange rate, which is unlikely to ease immediately.
In this regard, Federal Minister for Finance Shaukat Tarin said in a Twitter message, “I am pleased to announce that the IMF Board has approved the sixth installment of its program for Pakistan.”
Earlier, according to the IMF’s terms for the revival of the loan program, Pakistan has abolished the tax exemption of Rs 350 billion and increased the tax collection target from Rs 271 billion to Rs 6100 billion.
The target of Petroleum Development Levy has been reduced from Rs 600 billion to Rs 356 billion. It has also been decided to increase the PDL by Rs 4 per liter per month.
Apart from the reduction of Rs 200 billion in the development budget, electricity and gas bills have also been increased.
