In order to comply with the IMF’s requirements, Pakistan’s government has increased taxes and permitted currency depreciation.
Ishaq Dar, the finance minister of Pakistan, claimed that the IMF had been informed of plans to provide fuel subsidies in an effort to allay its worries before restarting a stalled $6.5 billion bailout.
In a statement shown on television on Saturday, Dar said, “It’s basically about taking money from rich Pakistanis and giving it to poor ones.” He added that the subsidies won’t have an influence on the nation’s budget. This week, there were a number of meetings with IMF representatives conducted in Islamabad, and numerous tasks to begin the loan programme were finished, he added.
This week, Pakistan increased interest rates to an all-time high after consumer prices accelerated to a new record. Pakistan is currently experiencing one of its worst economic crises in history. To comply with the IMF’s requirements, the government increased taxes, energy costs, and authorised currency depreciation.
According to junior finance minister Aisha Ghaus Pasha earlier this week, the fund is currently evaluating the proposed fuel discount, which the government intends to support for lower income groups by increasing fuel prices for wealthier motorists. Due to Pakistan’s repeated failure to meet IMF programme deadlines, Moody’s Investors Service last month downgraded the country to its lowest rating.