IMF requires big changes for new loan

Pakistani officials engage in intense negotiations with the International Monetary Fund (IMF) to secure a new loan program. The IMF presents a series of tough conditions, emphasizing the urgent need for broad reforms in Pakistan’s economy. Key demands include freezing revolving credit for electricity and gas, cracking down on theft in these sectors, and transitioning Distribution Companies (DISCOs) into private hands. The IMF also stresses the need to address inflation and discontinue subsidies to fertilizer plants. Pakistani authorities commit to using technology to improve tax collection and integrating additional sectors into the tax system. With the final installment of $1.1 billion contingent on meeting IMF requirements, cooperation between Pakistan and the IMF is crucial for the country’s economic future.