IMF says will analyse Pakistan’s debt sustainability

ISLAMABAD: The International Monetary Fund said that Pakistan’s the debt profile will be assessed, adding that it will consider the details of the previously taken loans before giving new loans.

Director Communications Department IMF Gerry Rice said that it will be ensured that the country's debt profile is sustainable and the executive board will take a decision on giving Pakistan a loan in future.

According to the IMF representative, transparency in an important factor in returning loans and talks are continuing with Pakistan.

The US is ensuring that the IMF loan shouldn’t be used in paying back China’s loans, as per the IMF.

Rice said that after the conclusion is reached on talks then the decision to go forward with the program will emerge.

Earlier in November, the IMF team came to Pakistan to conduct two rounds of talk, following which Finance Minister Asad Umar said that Pakistan refused to accept demands of an increase in tax rate and electricity prices by the international finance body.

Umar said that disagreements with the IMF continued on certain issues, which include an increase in electricity prices by 20-22%.

The Pakistani-led delegation led by Umar also disagreed on increasing tax collection target from Rs4,300 billion to over Rs4,700 billion.

The second round will begin when the IMF returns to Pakistan on January 15.