Sun. Dec 8th, 2019

IMF to approve $6 billion bailout package

Aftab Ahmed
Islamabad: The IMF will approve six billion dollar bailout package in the next two or three weeks as PTI government in Finance Bill 2019 has enhanced its capacity to repayment foreign loans by fulfilling one of the main conditions of the Fund.

Addressing a post budget press conference here on Wednesday, Prime Minister’s advisor on Finance & Revenue, Dr Abdul Hafeez Sheikh said that PTI government has broadened tax net by fixing revenue target of Rs 5550 billion for FY-2019-20, which is nearly equal to 13 percent of GDP.

PTI Government in its first budget has also reflected Rs 357 billion ($2.30 billion) in FY-2019-20, which clearly indicates that Pakistan is quite hopeful that IMF board will approve the package in the next two to three weeks time, Dr Hafeez added.

Under enhancing capacity repayment of foreign loans, Advisor to PM shared that the Federal Government will compress imports of worth $ 7 billion annually and by cutting its expenditure in the tune of Rs 800 billion annually along with an increase of Rs 1500 billion in tax collection.

This will create a fiscal space of Rs 3 trillion, which is equal to country’s annual debt servicing of foreign and domestic loans, said Hafeez Sheikh, adding that Pakistan is nearly half of its available resources for debt servicing meaning nothing left for social and other developmental sectors.

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