Islamabad: Pakistan has assured the International Monetary Fund (IMF) to raise its policy rate by 2% in order to fulfill the conditions set by the lender to revive the loan programme.
The sources aware of the development told Geo News that virtual negotiations with the IMF continued till late at night, adding that officials from the international lender were “painstakingly reviewing” every aspect.
“Pakistan has agreed to raise its policy rate by 2%,” the sources said, which is currently at 17%.
The sources also added that details regarding reforms in the power sector are being finalised and after the settlement, a staff-level agreement will be signed.
The power sector has remained a hurdle so far as it has become one of the major stumbling blocks between Pakistan and the IMF, according to Geo news.
Pakistan has also briefed the lender in detail on external financing till June, the sources said, adding the IMF is also holding talks with those countries for assurance.
There’s no discussion being held regarding the political situation of Pakistan, the sources further added.