The International Monetary Fund on Monday agreed to give Pakistan a loan of $5 billion.
The agreement on the fresh loan was reached after two days of talks in Islamabad. The Ministry of Finance has also confirmed the breakthrough.
During talks, government officials addressed the IMF’s reservations over the energy sector and taxation in the country.
The authorities assured the IMF that tax collection target had been set at Rs 2,475 billion during the current fiscal year through expansion in the tax net, and reduction in subsidy.
The IMF was also told that remittances of power tariff and line losses would also be brought down.
The Fund’s mission will stay in Pakistan until today (Tuesday).