Govt to Request IMF for Softer Conditions Due to Disastrous Flood

The Federal Government is planning to approach the International Monetary Fund (IMF) with a new policy, requesting to soften the onerous conditions in the loan package, well-informed sources to Propakistani. They said that the government will present a new policy based on emergency works, tax exemptions and rehabilitation measures in the flood-affected areas to cover the losses of Rs. 2 trillion. In this regard, the government has asked the concerned provincial and federal departments to assist in the estimation of the total losses. However, the policy will be brought forward after the transfer of the $1.17 billion tranche which is expected to be approved on Monday, 29 August, claim sources. Destruction of cotton, rice, vegetable crops and livestock, and dairy farms will be the main factor in the estimation of the loss with the government focusing on increasing the import bill to meet the needs of domestic commodities, livestock and dairy. In addition to this, a facility will be sought by requesting additional foreign exchange provisions to deal with the rising burden on foreign exchange reserves. The government will propose a reduction in revenues due to tax exemptions in areas related to flood damage. In order to meet this shortfall, IMF will be requested to adopt a soft policy in the face of increasing deficits.