ISLAMABAD: Minister for Finance and Revenue Miftah Ismail said that the staff-level agreement with International Monetary Fund (IMF) would be signed next month in June.
The minister was addressing a press conference sharing the details of Rs28 billion relief package announced by Prime Minister Shehbaz Sharif. He said that the funds under the Extended Fund Facility (EFF) would be released after final approval by the IMF board.
Miftah said that the fund, which had to provide $3 billion, has been requested to extend the program by one year and provide an additional $2 billion, adding accordingly the country expects around $5 billion from the fund.
He said, that the programme with IMF was not important just because the country gets money from the fund rather, it is important because it opens ways for getting funds from other multilateral organization like Word Bank and Asian Development Bank.
He said, once unlocked by IMF, Pakistan would get money from multilateral organization adding that around $8.9 billion were already in pipeline from World Bank.
The minister justified increase in petrol prices, saying that no doubt it would increase inflation but without the hike, the burden would fall on the government and result in more devaluation of rupee.
He said, after increasing the prices of petrol, not only rupee was strengthened against dollar by around 2.5 rupees but the stock market also moved positively, adding that it would also have a positive impact on banks to mitigate the liquidity pressure.
The minister said the government intended to provide relief to the poor against the inflationary pressure which was created due to inability of the previous government. He said the government would try its best to provide maximum relief to the poor of the country.
Giving details about the PM relief package, the minister said ‘Sasta Petrol and Sasta Diesel’ scheme would benefit around one-third population of the country by providing cash to 14 million households (84 million people). He said disbursement of Rs2, 000 to each household would start from June.Â
He said BISP participants would be provided immediate relief or Rs2, 000 whereas women who are not registered should send their CNIC on 786 for registration for the program. Accordingly, all people having an income of less than 40,000 would be eligible for the relief. He said the scheme would be incorporated in the federal budget for the fiscal year 2022-23.
To a question on privatization, the minister said, there was no talk on privatization with IMF this time. However, he added, the country needed to privatize certain entities including DISCOs and power companies for its own interest to reduce burden on national exchequer.
He said that Saudi Arabia has already announced extension of its $3 billion deposits to Pakistan and hinted that some more support was expected from that country the details of which would be shared in July.
To a question on import ban, the minister said that ban was imposed on the import of chocolates in bulk, however, anyone can get it for personal use.
