Pakistan is likely to issue a $200 million loan to Sri Lanka after the country will get a loan installment of $1 billion from International Monetary Fund (IMF).
According to media reports, a meeting of the Executive Board of the IMF in Washington is likely to decide on the resumption of the loan program to Pakistan and the release of a one billion dollars installment.
According to the IMF’s terms for the revival of the debt program, Pakistan has abolished the tax exemption of Rs 350 billion and increased the tax collection target from Rs 271 billion to Rs 6100 billion.
The target of Petroleum Development Levy has been reduced from Rs 600 billion to Rs 356 billion. It has also been decided to increase the PDL by Rs 4 per liter per month.
In addition to the reduction of Rs 200 billion in the development budget, electricity and gas bills have also been increased.
The audit reports of Corona Funds have been uploaded on the Auditor General’s website at the request of the IMF and amendments have been made in Schedules 5, 6, 7, 8, and 9 to eliminate tax exemptions. Thus, by taking all these steps, all the conditions of IMF have been fulfilled.
Now, with the approval of the IMF’s executive board, a $1 billion loan will be released to Pakistan immediately, along with a debt recovery program.
On the other hand, there are reports that Sri Lanka will borrow $200 million from Pakistan. According to Sri Lankan media, the term of the loan from Pakistan and the details of the agreement are being worked out and Pakistani cement and rice will be purchased from the loan obtained from the country.