The International Monetary Fund (IMF) expects to reach an agreement with Pakistan this week on the targets set under the first review of a $3 billion bailout, IMF Managing Director Kristalina Georgieva said on Wednesday, which will enable Islamabad to receive a second tranche of the funding.
"I expect an agreement of the review to come within this week," she said in an interview with Bloomberg News.
In Pakistan, the primary issue is tax collection, Georgieva told Bloomberg, adding that the IMF is asking Islamabad for tax collections to be at least 15% of gross domestic product (GDP) against 12% in collections currently.
An IMF mission has been in Pakistan for the last two weeks for technical and policy level talks to review whether the South Asian nation was on track to meet the benchmarks set under the standby arrangement agreed in July.
Georgieva commended Islamabad's efforts, saying it has been sticking to the program despite all the difficulties.
The IMF mission concludes its visit to Islamabad on Wednesday. (Reporting by Kanjyik Ghosh and Asif Shahzad; Editing by Christian Schmollinger and Tom Hogue)