If conditions are not met, tougher conditions ahead: IMF warning
The Ministry of Finance and the International Monetary Fund (IMF) have agreed on a plan to control revolving credit.
According to the sources, the revolving debt of the power sector will be stopped at 2340 billion rupees this financial year, more than 400 billion has been approved to reduce the revolving debt, and this amount should be released in installments. will
According to the sources of the Ministry of Finance, the revolving credit will increase by 122 billion rupees in the current financial year, but the plan not to increase the revolving credit in the next financial year has been given to the IMF.
According to the sources, to control the revolving credit, the increase in power prices and recovery will be improved.
Sources have said that the IMF has approved the finance ministry’s plan to freeze revolving credit.
However, the IMF has also warned that if the revolving credit is not brought under control, the agreement will be violated and more stringent conditions will be imposed for future agreements if the terms are not implemented.
It should be noted that Pakistan and the IMF have agreed on a standby agreement of $3 billion for 9 months, according to which the Executive Board of the IMF will approve the release of an installment of $1.1 billion for Pakistan.