Pakistan to seek US help for staff-level agreement with IMF.

Following the delay in the staff-level agreement with the International Monetary Fund (IMF), Pakistan has decided to seek US help for the revival of the stalled loan programme.

Sources within the Finance Ministry familiar with the development said that the incumbent government has decided to seek Washington's help as the majority of the demands of the fund have been completed. 'There is no need for further delay in the staff-level agreement.'

They further say Finance Minister Ishaq Dar will talk with the US envoy this week. It has been leanrt that there are chances of a staff-level agreement between Pakistan and the IMF this week.

The virtual talks are also scheduled today with the International Monetary Fund.

Sources further claimed that officials from State Bank of Pakistan and IMF had held talks on Thursday. They discussed the points finalised in the Memorandum of Economic and Financial Policies.

The International Monetary Fund (IMF) had asked Pakistan to implement demands before reaching a staff-level agreement for the revival $7 billion Extended Fund Facility (EFF) stalled for months.

Monetary Policy

The State Bank of Pakistan (SBP) raised the monetary policy rate by 300 basis points to 20per cent - one of the pre-conditions of International Monetary Fund.

'This decision reflects deterioration in inflation outlook and its expectations amid recent external and fiscal adjustments. MPC believes this outlook warrants a strong policy response to anchor inflation expectations around the medium-term target of 5-7 percent,' the statement said.

'MPC noted that reduction in CAD is important but requires concerted efforts to improve the external situation. It emphasized that any significant fiscal slippage would undermine monetary policy effectiveness in...