The International Monetary Fund (IMF) has called on Pakistan to reduce its circular debt as a special session was held on the circular debt management plan during the ongoing talks between the two parties. Pakistan told the IMF delegation it is working on a plan to reduce the circular debt by Rs 1250 billion, with Rs. 300 billion potentially being settled, the sources said. “Pakistan plans to borrow Rs 1,250 billion from banks to reduce circular debt. The plan also proposes waiving late payment surcharges of up to Rs. 600 billion.”
