Ahmed Mukhtar Naqhsbandi
Mr. Nathan Porter, IMF Mission Chief expressed his confidence that the government will meet the IMF requirements for the completion of the 9th review and hoped that Pakistan would continue towards its progress on the reforms in various sectors and complete the IMF Programme within time effectively. He further added that IMF and Pakistan will be working together on fiscal reforms.
Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar held a meeting with IMF review Mission led by IMF Mission Chief Mr. Nathan Porter at Finance Division, today.
Finance Minister Senator Ishaq Dar welcomed the delegation and shared long standing friendly relations with the IMF. He briefed the Mission on fiscal and economic reforms and measures being taken by the Government in different sectors including bridging the fiscal gap, exchange rate stability and in energy sector for the betterment of the economy.
He apprised that reforms are being introduced in power sector and a high level committee has been formed for devising modalities to offset the menace of circular debt in gas sector.
Finance Minister also extended gratitude to the Managing Director of IMF on continuation of talks and shared that as Finance Minister he had successfully completed the IMF programme in the past and that the Government was committed to complete the present programme.
He further extended all his support to the Mission and committed to work together for reaching an agreement to complete the 9th review under Extended Fund Facility (EFF).
The meeting discussed and reviewed the economic and fiscal policies and reforms agenda to accomplish the 9th review under the Extended Fund Facility.
BISP & Flood Relief Support
As per sources, IMF agreed to allow Pakistan government to provide relief to the poor segment of society through the Benazir Income Support Programme (BISP), but on the same time placed utmost stress on complete adherence to maintain financial discipline. It means keeping fiscal deficit at lowest.
IMF’s review mission is in Pakistan for technical and policy level discussions to revive the $7 billion Extended Fund Facility stalled for months.
Analysts have termed the technical level talks last week one of the toughest the ever as the IMF had refused to relax its terms set for the revival of the facility.
The Key Conditions
The Fund mission had insisted on fulfilling promises made by the central coalition government in its last budget for the fiscal year 2022-23, which include:
- Budget deficit to be maintained at 4.9%.
- Primary deficit to clock in at 0.2% of the GDP.
- Rs1,100 billion exemption as subsidy for export sector to be removed.
- FBR’s tax target of Rs7,470 billion should be essentially met.
- Circular debt must be reduced substantially.
- From petroleum levy Rs 855 billion should be collected.
- State-owned entities losses should be reduced.
- Privatisation program should be enforced as planned.
Ms. Esther Perez Ruiz , IMF resident representative, Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, SAPM on Finance Mr. Tariq Bajwa, SAPM on Revenue Mr. Tariq Mehmood Pasha, Governor State Bank of Pakistan Mr. Jamil Ahmed, Secretary Finance, Chairman FBR, members of IMF delegation and senior officers from Finance Division attended the meeting.
