Ahmed Mukhtar Naqshbandi
ISLAMABAD: Pakistan and the financial agency, International Monetary Fund (IMF), will start policy-level negotiations on Tuesday. These talks will continue till Feb 09, 2023 (next there days).
Local media reported that the technical talks between the economic team of Pakistan and International Monetary Fund (IMF) concluded on Friday and on Monday nine macroeconomic data tables will be exchanged between the Fund staff and the Finance Ministry.
Both sides, reportedly discussed several matters, including increasing the GST rate up to 18 percent to collect more taxes and conduct audit of State Owned Enterprises (SOEs).
Both sides also held discussion over matters related to debt servicing, which could peak at a whopping Rs5.2 trillion during the current fiscal year 2022-23.
In addition, during the technical talks, the IMF asked Pakistan to withdraw un-budgeted power subsidies for exporters and other sectors.
IMF sets tough conditions for Pakistan
During the technical talks, IMF asked Pakistani authorities to take strict action to fill a yawning gap on account of fiscal slippages to restrict the primary deficit within the envisaged limits.
Meanwhile, Federal Board of Revenue (FBR) on the recommendations of IMF also issued SRO about the declaration of assets for employees from grade 17 to 22 to banks.
The financial agency was pressing Pakistan for the last several months that the government should publicise the assets and details of civil servants.
According to media reports, the IMF and Pakistani team will resume the policy-level talks on Monday, and the Finance minister Ishaq Dar will also participate in these meetings.
It is pertinent to note that Pakistan’s Prime Minister Shehbaz Sharif on Friday also disclosed that the IMF team is giving a “very tough time” to the government’s economic team.
PM Shehbaz admitted the conditions the government has to fulfill are beyond imagination, but the country has no choice but to accept them.
“You all are aware of the fact that the government is running short of resources,” PM Shehbaz said. He added the country is facing severe economic crisis.
