ISLAMABAD: Final round of talks between the IMF and will be held today as the sides agreed over almost all points, citing sources ARY News reported on Wednesday.
Sources at the finance ministry said that the dialogue with the International Monetary Fund (IMF) has been nearing a successful end.
“Policy level dialogue on power subsidy has also been successful,” sources said. “Caretaker government will not raise the basic tariff of electricity, which will not be enhanced till March,” sources shared.
“The IMF has demanded a temporary surcharge to unburden circular debt and stressed for the imposition of a per unit 95 paisa surcharge,” according to sources.
“With the final round of policy level talks with the IMF today, the review will come to an end,” sources said.
Finance Ministry’s sources said that the talks’ success has been conditioned with the satisfaction of the IMF and it has to be decided by the monetary fund.
“The staff level agreement will take place between Pakistan and the IMF after the successful completion of talks,” sources shared.
The ministry’s sources said that the IMF mission has expressed reservations over Pakistan’s need for foreign financing, while also apprehending failing to achieve the current fiscal year’s tax recovery target.
“The IMF has also raised questions with regard to the SIFC,” sources said. “The government has tried to address the objections raised by the IMF mission,” sources added.
Under the $3 billion Standby Arrangement (SBA), Pakistan received $1.2 billion from the IMF as the first tranche in July.
A successful review would unlock $710 million second tranche of the loan in December.
Talks between Pakistan and the IMF are nearing a successful conclusion, as they have agreed on almost all points. The dialogue has been successful regarding power subsidy, with no increase in the basic tariff of electricity until March. The IMF has requested a temporary surcharge to relieve circular debt. The final round of talks will conclude the review, with a staff level agreement to be reached afterward. The IMF has expressed concerns about Pakistan’s need for foreign financing and its ability to achieve the tax recovery target. Successful review would unlock the second tranche of the $3 billion Standby Arrangement loan in December.
Leave a Comment