ISLAMABAD: The much-anticipated Pak-IMF policy level talks are set to commence Monday, lasting until May 23, with a focus on crucial economic reforms and the finalization of the Memorandum of Economic and Financial Policy (MEFP).
Led by IMF mission chief Nathan Porter, discussions will encompass a wide range of issues including taxation, balance of payments, fiscal and monetary policies, international trade, and manufacturing sectors.
Recent reviews have highlighted concerning aspects of Pakistan’s economic landscape, particularly its current account deficit, unsustainable external liabilities, and the urgent need to enhance foreign exchange reserves. The IMF has underscored the importance of addressing these challenges to safeguard the country’s economic future.
In the energy sector, IMF recommendations suggest a devaluation of the rupee and revisions to electricity tariffs to reflect realistic pricing and reduce the burden on consumers. Efforts are underway to transition from net-metering to gross metering for rooftop solar panels and renegotiate tariffs with Independent Power Producers (IPPs) to address the circular debt issue.
Additionally, Pakistan seeks a significant debt restructuring package from China, highlighting efforts to manage its financial obligations and stabilize the economy. These measures underscore the government’s commitment to implementing structural reforms and ensuring sustainable economic development in collaboration with international partners.
