The IMF has provided the Pakistani authorities with the draft of the Memorandum of Economic and Financial Policies (MEFP) to help generate consensus.
This movement could pave the way to reach an agreement at the personnel level under the installation of extended funds (EFF) of $ 7 billion.
According to the sources, some relief measures for the construction and real estate sectors are being considered. However, it has not yet been decided if these relief measures will be implemented immediately or will be included in the next budget.
It is worth noting that negotiations between Pakistan and the IMF concluded without a final agreement, and an agreement at the personnel level remains essential before the release of a section of $ 1 billion.
Meanwhile, the IMF has imposed strict conditions for financial discipline, said Express News.
The sources indicate that the Federal Income Board (FBR) did not reach its tax collection objective, which caused additional expenses and measures cuts to achieve a primary surplus. The IMF has also proposed to reduce electricity prices and keep the oil tax at RS 70 per liter.
In addition, the IMF has asked how the government plans to address the circular debt, since the previous models of cross subsidy have failed in the past. In response, the government has presented a six -year plan to eliminate circular debt in the energy sector.
According to the sources, if the IMF approves the draft, the Pakistani government is expected to receive financial relief.
Previously, the IMF mission returned to Washington without reaching an agreement at the personnel level with Pakistan for the release of more than $ 1 billion sections of loan, but said that “significant progress was achieved” during conversations to reach an agreement.
A day after the end of the first review conversations, the IMF issued a press release that recognized the “solid implementation” in the program. But he still did not announce the agreement at the personnel level, which is essential to maintain economic stability in Pakistan.
