The International Monetary Fund (IMF) has stopped the release of next installment of loans to Pakistan till the imposition of Value Added Tax (VAT).
According to sources, IMF has clarified to Pakistan, not to expect the release of loans before the imposition of VAT.
With this condition, loan of $1.15 billion has been stopped including Budget Support worth of $363.7 million, sources added.
According to sources of Finance Ministry, Pakistani officials were scheduled to hold talks with IMF in the first week of August, however, the visit now seems to be in doldrums due to refusal by IMF.
Sources told that the Resident Mission of IMF in a dispatch sent to the Finance Ministry also asked Pakistan to fulfill its pledge made with World Bank regarding six percent increase in electricity rates.