Islamabad has been negotiating with the IMF since the end of January for the release of $1.1 billion from a $6.5 billion bailout package agreed upon in 2019.
To unlock the funding, the government has cut back on subsidies, removed an artificial cap on the exchange rate, added taxes and raised fuel prices.The finance ministry confirmed that the lender had informed the Pakistani authorities about the development.They further said that the Saudi authorities are all set to make a public announcement, probably during the upcoming visit of Prime Minister Shehbaz Sharif to the kingdom.Islamabad has been negotiating with the International Monetary Fund (IMF) since the end of January for the release of $1.1 billion from a $6.5 billion bailout package agreed upon in 2019.To unlock the funding, the government has cut back on subsidies, removed an artificial cap on the exchange rate, added taxes and raised fuel prices.It may be noted that the IMF had demanded of the Pakistani government to get a written guarantee from the friendly countries for the deposit.It was reported earlier that Saudi Arabia and UAE had sought some time to assure the IMF regarding the deposit.