International Monetary Fund’s clutches have expanded further as the Fund agreed to pay $5 billion loan to Pakistan, media reported on Monday.
The loan agreement on fresh loan was reached after two days of talks in Islamabad. Ministry of Finance has also confirmed the breakthrough.
During talks, the government officials addressed IMF’s reservations over energy sectors and taxation side.
The authorities assured IMF that tax collection target has been set at Rs. 2475 billion during the new fiscal year through expansion in the tax net, whereas, subsidy will be reduced step by step.
IMF was also told that remittance of power tariff and line losses will also be brought down.
The Fund's mission will stay in Pakistan till Tuesday.