The International Monetary Fund (IMF) has set strict conditions for Pakistan to get the new bailout programme.
The sources privy to the development said that the IMF asked the federal government not to borrow from the State Bank of Pakistan and to only sell sukuk bonds in the stock market.
The IMF has also asked the Pakistani government to set the dollar exchange rate according to market conditions and fixation of the interest rate as per inflation.
The sources said that the IMF also sought the implementation of a strict monetary policy for reduction of the budget deficit.
The maintained that debts and interest payments on Pakistan are the main reason for the deficit, asking the finance ministry to reduce pensions and other expenses.
