Pakistan Minister feels country's exit from IMF loans not anytime soon

Pakistan's Caretaker Finance Minister Shamshad Akhtar said the government has deferred its plans to issue a $1.5 billion international bond.

Her remarks came a day after the government reached a staff-level agreement with the International Monetary Fund on a nine-month bailout package, reported Dawn News.

During a press briefing, Dr Akhtar outlined key aspects of the IMF agreement, affirming the government’s commitment to regular tariff adjustments, including a planned gas price hike in January to prevent the accumulation of circular debt in both the gas and power sectors.

The electricity and gas rates would be “continuously revised” and their costs controlled besides transferring their management to the private sector as soon as possible and institutionalising ongoing campaign against power and gas theft, she said.

She said Pakistan would also need to adhere to the market-determined exchange rate completely, remain responsive through adequate monetary policy adjustment, particularly to core inflation, and bring four more state-owned enterprises in line with the financing and governance template of the newly approved SOE law.