On Friday, the International Monetary Fund announced that Pakistan has reached a staff-level agreement for a new $7 billion loan deal. This is the nation’s latest request for assistance from the global lender in bolstering its economy and settling its debts through significant bailouts.
The $3 billion bailout package for Pakistan was approved by the IMF earlier this year, with the final $1.1 billion tranche being released immediately. According to Finance Minister Muhammad Aurangzeb, after the bailout package expires, the government intends to seek a long-term loan to help stabilise the economy.
The new loan agreement has a 37-month duration. The IMF stated that its goals include fortifying fiscal and monetary policy and reforms to extend the tax base, enhance human capital, secure level playing fields for investment, improve the management of state-owned enterprises, boost competition, and expand social protection through more generous giving and coverage in a significant welfare programme.
Pakistan wants to collect taxes of 13 trillion rupees ($44 billion), which would be 40% more than in the current fiscal year, according to the finance minister. Aurangzeb added, “The government will make sure that there are more taxpayers.” In Pakistan, only roughly 5 million people file taxes.
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