Almost a year after the International Monetary Fund (IMF) withheld its $6 billion bailout package program to Pakistan, an understanding has been reached between officials of Pakistan and the IMF at the staff level.

According to a report in Dawn, the agreement, after approval from the IMF Board, would allow Pakistan to access $500 million as the third loan tranche. In exchange, Pakistan agreed to rationalize expenditure, increase electricity prices, and slap additional taxes.

Issuing a statement, IMF said, “The IMF staff and the Pakistani authorities have reached an agreement on a package of measures to complete second to fifth reviews of the authorities’ reform program.” 

Last year in January, when Pakistan Prime Minister Imran Khan had refused to hike the electricity tariff in the country, the IMF withheld the next tranche of the bailout package. However, the government now agreed to hike electricity prices in the country.

The IMF has already released around $1.45 billion under the package. The IMF is expected to approve the latest agreement in a meeting next month, thereafter the third tranche of $500 million would be released to Pakistan.