The International Monetary Fund (IMF) and the Pakistani government have agreed on several issues, according to Minister of State for Finance Dr. Aisha Ghaus Pasha.
The Minister of State for Finance stated that negotiations with the IMF are progressing favorably while speaking to the journalists outside the Finance ministry.
As we work to temporarily halt the anticipated increase in power tariff, the government is requesting significant relief for the general public.
The electricity rate, she said, would be decided later since we couldn’t raise it, and while we would be able to protect the average person, those who can afford it now would have to pay more.
IMF and Pakistan Understanding
The Minister claimed that “we have reached some understanding and clearance from the prime minister level has also been given on some things”.
She claimed that in order to reach an agreement, the IMF needed more clarification on a few points, which the Pakistani government will provide.
Before holding a luncheon for the IMF mission on the first day of policy level talks, Governor SBP reportedly briefed the IMF on external finance.
According to further sources, senior officials from both sides held informal meetings on important policy problems like the budget deficit, foreign funding, and other important concerns.
According to sources, the IMF requested the withdrawal of a Rs. 100 billion subsidies given to the export-oriented sector and the introduction of a uniform 1% general sales tax during the technical level negotiations due to its dissatisfaction with the performance of the electricity sector.
The government’s proposal to address the Rs. 952 billion circular debt in the power sector did not meet the Fund’s expectations.
In order to reduce the fiscal imbalance, the government is reported to have put forward a one-time flood levy to raise about Rs. 180 billion.
It also did not rule out the prospect of making significant cuts to the public sector development program (PSDP).
To read our blog on “Govt. and IMF are still in deadlock over new deal,” click here.
