The talks with the IMF to revive the $7 billion Extended Fund Facility (EFF) Prgoram are likely to finalize today.
Pakistan is currently in talks with the IMF delegation that arrived in Islamabad on 30th January 2023 to discuss the stalled ninth review of the 7 Dollars billion Extended Fund Facility (EFF).
Also Read: IMF asked Pakistan to increase the General Sales Tax (GST) by 18 Percent
According to Finance Minister Ishaq Dar talks with the International Monetary Fund (IMF) were “on track” and the government would share “good news” on the matter regarding the Loan program will be settled today.
While speaking to the media today, Finance Minister Ishaq Dar said, “I am going to meet the IMF mission. The final round of talks with the Fund is currently underway.”
“Talks are on track and we will share good news today. There are no differences with the IMF team,” he maintained. The finance minister said during a media talk in Islamabad giving hopes that the two sides would soon reach a deal after “tough” talks.
IMF Mission Chief Nathan Porter held a one-on-one meeting with Finance Minister Ishaq Dar at the PM House.
According to sources inside Finance Ministry that the International Monetary Fund (IMF) suggested a subsidy for poor energy consumers. Power and gas tariffs for rich consumers are likely to be enhanced, as the government has agreed to hike gas and electricity rates for the rich.
IMF adds some of its conditions to the circular debt management plan. “The government preparing to enforce decisions taken by the gas and power regulators OGRA and NEPRA.
“The final draft of the Memorandum of Economic and Financial Policy will be prepared today,” sources said. “Subsidy for poor consumers will remain intact in the circular debt management plan,” sources added.
“The IMF team has understood difficulties faced by Pakistan and accepted that the deficit has increased after unprecedented floods in the country,” sources said.
“There could be some relief in IMF demands and it has reviewed some of its targets,” sources added.
Earlier this week The International Monetary Fund (IMF) expressed dissatisfaction over financial indiscipline and mismanagement in government offices and departments.
The IMF often provides assistance to countries facing financial difficulties and may advise governments on how to improve their financial management practices to restore financial stability and promote economic growth. According to sources, the IMF has expressed dissatisfaction over the persistent deficit in state-owned entities.
“There is a lack of improvement in electricity and gas transmission losses,” IMF pointed out. “Pakistan continuously bearing losses in the energy sector,” the IMF delegation observed. “It insisted on privatization of the state entities bearing losses,” sources said.
Some credible sources claim that “IMF is also demanding eliminating corrupt practices and retapes in government entities and business-friendly and convenient tax collection mechanism,”
The lending institution has demanded the privatization of Balloki and Haveli Bahadur Shah LNG power plants, privatization of government banks running in losses, House Building Finance Corporation, and other state-owned entities.
Sources claim that if IMF determines that a government is not adhering to sound fiscal practices, it may delay or withdraw its support.
Tough Time
Prime Minister Shehbaz Sharif while chairing an apex committee in Peshawar said that the International Monetary Fund (IMF) was giving Pakistan “a Tough time” for unlocking stalled $7 billion loan programme.
Premier said “As we all know, an IMF delegation is in Islamabad for holding talks on the stalled loan program and giving a very tough time to the finance minister and his team,”
Premier said, “Our economic situation is unimaginable” adding “You all know we are running short of resources,” Sharif said, adding Pakistan “at present was facing an economic crisis that’s beyond imagination.”
Declaration of Assets
The International Monetary Fund (IMF) demanded Pakistan amend its laws regarding the assets declaration of public servants.
According to the sources inside the Federal Board of Revenue (FBR), the IMF requested the public declaration of the government servants’ assets. not only this but the IMF also demanded details of the overseas assets of the bureaucracy, sources said.
Sources said that The IMF has also demanded to make public the government officers’ assets. IMF Proposed setting up an Electronic Assets Declaration System for transparency.
“Bureaucrats’ assets will be checked prior to the opening of a bank account,” sources said. “Banks will get information from the FBR for the opening of accounts of bureaucrats.”
“All 17 to 22 Grade officers have to provide all information before opening a bank account,” sources said.
It is to be Pertinent that The IMF asked Pakistan to impose roughly Rs600-800 billion in additional taxes in the second round of talks to revive the $7 billion Extended Fund Facility (EFF) stalled for months.
