In a bid to steer the country out of the economic crisis, the Government of Pakistan on Wednesday finally struck the much-needed deal with the International Monetary Fund (IMF) for the revival of the stalled Extended Fund Facility (EFF) programme, Geo News reported, citing finance ministry sources.
The latest development comes a day after Federal Minister for Revenue and Finance Miftah Ismail had indicated the revival of the agreement with IMF within a day or two.
“I am very hopeful that the IMF programme will be revived soon,” the finance minister had said while speaking to journalists.
Meanwhile, sources said that the deal was struck after the Government of Pakistan took measures to satisfy the terms and conditions laid forth by the IMF for the resumption of the $6-billion loan programme for the country.
The body, per sources, also agreed with the steps taken by Pakistan in terms of the budget for the upcoming fiscal year 2022-23, while it also accepted the country’s budget targets.
Following the deal, the chances for the revival of the loan programme are “very bright,” finance ministry sources said.
According to the sources, a communique in this regard will be issued soon.
Following the downward trend of the Pakistani rupee against the US dollar, the recent agreement with the global lender was of utmost importance to steer the country out of the ongoing economic crisis.
To meet the conditions of the IMF, the government had to take some tough measures, such as banning the import of certain items and removing subsidies that resulted in an unprecedented hike in POL [petrol, oil, lubricants].