Stock Groups

Pakistan to cut expenditures, development funds to revive IMF programme -Breaking


© Reuters. FILEPHOTO: This is a laborer standing in front of the cargo supply area at a Karachi warehouse, Pakistan on May 13, 2020. REUTERS/Akhtar Soomro/File Photo

By Asif Shahzad

ISLAMABAD, (Reuters) – Pakistan must reduce expenditures and develop funds in order to revive the International Monetary Fund (IMF), Finance Minister Miftah Ismail stated on Wednesday.

Ismail stated that they will pursue revival of IMF programmes and would, God willing do belt tightening and reduce PSDP (Public Sector Development Funds).” Ismail spoke at a Islamabad news conference.

Ismail stated that he will be traveling to Washington in the latter part of the day for an IMF meeting.

Pakistan awaits the IMF’s seventh review of its $6 billion rescue plan, which was agreed to in July 2019

The South Asian country is desperately in need of foreign finances, with a huge current account deficit and falling foreign reserves to $10.8 billion.

The new Pakistani government, which took power from PM Imran Khan earlier in the month, said that it faced enormous economic problems. At the end of June’s current financial year (June), the fiscal deficit was likely to be more than 10%.

Double-digit inflation is another problem that the new PM Shehbaz Sharif government has had to face.