ISLAMABAD: Pakistan government has agreed to reduce subsidy and increase electricity tariffs in return for $5.3 billion bailout package from the International Monetary Fund (IMF).
According to a spokesman of the Finance Ministry, during talks with the IMF representatives the government has agreed to gradually eliminate power subsidy and increase tariffs.
Finance Minister Ishaq Dar is expected to announce details of the loan agreement with the IMF during press conference later this evening, the spokesman added.
He claimed that the government is securing IMF loan in the national interest and on its own terms.
After securing loaning program of the IMF additional funding of up to $6 billion is also likely from other multi-lateral donors like the World Bank and Asian Development Bank.