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ISLAMABAD: Pakistan has assured the International Monetary Fund (IMF) to increase its interest rate by 2% in order to fulfill the conditions set by the lender to revive the loan program, according to officials from the ministry of finance.
More than $1 billion of the $6.5 billion bailout package has not yet been released as the country works to resolve conflicts over fiscal policy. The interest rate is now 17%.
According to local media reports, a virtual meeting held between the IMF and Pakistani officials late last night.
“Pakistan has agreed to raise its policy rate by 2%,” the Geo tv reported citing sources.
The report also added that details regarding reforms in the power sector are being finalized and after the settlement, a staff-level agreement will be signed.
The Fund’s officials also holding talks with the countries from which foreign exchange will come.
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“Pakistan has to ensure keeping foreign exchange reserves equal to two months imports till June,” it said.
“The monetary policy board of the State Bank of Pakistan will take final decision about the interest rate,” the report added.
