Khurram Dastgir, Pakistan’s minister of power, stated that the government is nearing an agreement with the International Monetary Fund (IMF) and that practically all of the concerns between the two parties have been resolved.
Pakistan needs an important IMF installment of $1.1 billion to avoid default with a $350 billion economy. A staff-level agreement, however, has been hampered by the IMF’s identification of a sizeable deficit of about Rs900 billion, or 1% of the nation’s Gross Domestic Product (GDP), which has been a barrier.
During his Monday interview on the Geo News show “Capital Talk,” Minister Dastgir reassured viewers that the IMF has not requested that the government reduce its defence spending.
According to the Minister, the IMF has asked the Energy Division to lower its losses rather than slash the defence budget. The Fund has also underlined the necessity for the federal government to lower line losses in the nation’s north, south, and west. The Minister stressed that the IMF had made it clear to Pakistan that it needed increase tax revenues and cut losses in order to achieve financial stability.
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He added that since the US left Afghanistan, Pakistan is not being treated kindly by the international world. The Minister stated that in order for the nation to harmonise its financial situation and fulfil the demands of the IMF and the international community, the appropriate steps must be taken.