June 10, 2020 (MLN): The third round of negotiations between International Monetary Fund (IMF) and Pakistan on upcoming budget have been succeeded to reach a consensus.

According to the sources, both sides agreed to increase pension and salaries of the government employees in the forthcoming budget and not to increase gas and electricity tariff until September.

The two sides also agreed to give relief during the first quarter of FY21 and agreed upon to increase tax revenue from other sources to plug the fiscal deficit.

During the talks, Pakistan assured the IMF that it would increase its non-tax revenue and that the IMF would keep all conditions temperate till September 30.

Furthermore, the IMF has been assured that the government will not borrow loans from the State Bank of Pakistan (SBP) and will follow to the existing loan program, while most of the terms of the current loan program will be fulfilled after October 2020.

Copyright Mettis Link News

35163