World News | Pakistan accepts one more condition from IMF, agrees to hike interest rates by 200 bps

Islamabad [Pakistan]26 February (ANI): The Pakistani government has agreed to hike the 17 percent policy rate by 2 percentage points or 200 basis points to meet another condition set by the International Monetary Fund (IMF), the Express Tribune reported. .

Under the new decision, Pakistan has accepted another precondition for the IMF to release $1.1 billion in key funds as part of a $6.5 billion rescue package, the report said, adding that Pakistan had announced an increase in interest rates based on the government’s set in the auction. set interest rates to raise domestic debt.

Read also | Australian scientists have discovered a new layer in the Earth’s inner core.

The Pakistani authorities’ decision will raise interest rates to 19 percent, slightly below the previous record of 19.5 percent set in October 1996, the Express Tribune reported.

Sources in Pakistan’s finance ministry said there had actually been a technical discussion between Islamabad and the IMF review team.

Read also | Papua New Guinea Earthquake: 6.2-magnitude quake hits Kandrian, no casualties reported.

Pakistan is expected to raise rates by 2 percent, sources said, according to the Tribune. According to sources, the Pakistani government is in the final stages of discussions with IMF officials on some issues in the power sector.

Earlier this month, the Pakistani government and IMF staff completed the ninth review of the $6.5 billion rescue package without a staff-level agreement. The Pakistani government had hoped that they would be able to persuade the IMF to gradually implement the conditions.

However, Islamabad’s hopes were dashed during a 10-day visit to Pakistan by an IMF delegation.

Pakistani Prime Minister Sheikh Baz Sharif directed the foreign ministry to cut the number of foreign missions as part of austerity measures amid the country’s unprecedented economic crisis, Geo News reported.

Prime Minister Sheikh Baz Sharif announced the decision on 22 February.

“The Prime Minister is pleased to direct that a well thought out proposal/plan in this regard be submitted to this Office within two weeks,” read a directive issued by the Prime Minister’s Office.

According to Geo News, Shehbaz has issued instructions to the Ministry of Foreign Affairs to cut some foreign missions abroad and reduce their offices, personnel and other measures to cut expenditure by 15%.

According to press reports, the official communication entitled “Rationalization of Overseas Missions” states that the Prime Minister is pleased to form the National Austerity Council (NAC) in view of the ongoing economic constraints and the consequent need for fiscal consolidation and reining in external deficits . (Arnie)

(This is an unedited and auto-generated story from a Syndicated News feed, the content body may not have been modified or edited by LatestLY staff)