Pak agrees terms for $5.3bn loan from IMF

The International Monetary Fund (IMF) and the government of Pakistan have agreed to a 5.3 billion dollars three-year loan programme for improving the economic condition of the country.

The Daily Times reports that the programme titled 'Extended Fund Facility' (EFF) has a repayment period of 10 years, with first four years being grace period without any repayment.

IMF mission chief, Geffrey Franks said that the Pakistani government would be required to implement fiscal measures like imposition of more taxes and withdrawal of tax exemptions, increase in power and gas tariffs, elimination of power tariff subsidies and privatization or re-structuring of public sector enterprises in the agreed timeframe.

Franks added that this loan is to generate significant revenues in order to boost economic growth for a better future of all Pakistanis.

According to the reports, Finance minister, Ishaq Dar said that the government is not going to utilize this loan; rather it would be used for the repayment of the Stand-By-Arrangement loan obtained by the Pakistan's People Party (PPP) government.

Dar further added that the government would like disbursement of loan installments as and when repayments of past loans arise so as to avoid pressure on the country's foreign exchange reserves and stability of exchange rate.