Pakistan and the International Monetary Fund (IMF) have officially initiated discussions for the first review of the extended fund installation (EFF) of $ 7 billion insured last year.
According to the Ministry of Finance, the IMF delegation, directed by Nathan Porter, met with the Minister of Finance, Muhammad Aurengzeb in Islamabad. The meeting focused on the general economic situation in the country.
During the meeting, Pakistan has assured the global lend of his commitment to fiscal discipline and economic reforms as conversations continue in Islamabad for the last economic review.
Finance Minister Muhammad Aurengzeb, informed the IMF delegation about the country’s macroeconomic situation, income collection and progress in structural reforms. He reiterated that Pakistan is still committed to meet the conditions of his loan program of $ 7 billion.
The discussions covered the economic performance of Pakistan in the first half of the current fiscal year, with officials who present data on fiscal deficit, primary balance, collection of provincial income and surpluses. The IMF team also reviewed the expenses of the Public Sector Development Program (PSDP) of Pakistan and the proposed budget adjustments.
Officials of the Ministry of Finance, the Planning Commission and the Federal Income Board (FBR) participated in the conversations, providing information on tax collection efforts and government spending.
The IMF delegation was also informed about the green initiative of Pakistan, highlighting the fiscal strategies related to climate change.
The meeting was attended by senior IMF officials, including the head of the Nathan Porter review mission.
The Pakistani authorities assured the delegation that the structural reforms in taxes and the energy sector are being implemented to guarantee economic stability.
The sources indicate that the IMF is expected to present its recommendations for the next Federal Budget of Pakistan.
The Ministry of Finance has already submitted a compliance report that describes progress in loan conditions, including measures to control the fiscal deficit and improve external financing.
The IMF team will continue the discussions with other ministries and financial institutions before concluding the revision process.
Pakistan’s agreement with the IMF remains crucial, since he looks for other loans under the program to stabilize currency reserves and maintain investor confidence.
Previously, the IMF requested an offensive against tax evasion in the real estate sector of Pakistan as negotiations for the release of a section of loans of $ 1 billion in Islamabad begin.
This demand is part of the ongoing discussions aimed at ensuring the next section of the loan program of $ 7 billion.
As part of the plan, the authorities intend to take measures against the people involved in declaring false property values, with sanctions that include prison and fines.
Agents who do not register the properties could face fines of up to RS 500,000, while those who provide false information could receive a fine between RS 200,000 and RS 500,000.
The real estate regulatory authority will be empowered to impose prison sentences of up to three years.
The negotiations for the loan section will continue until March 15, 2025, and are divided into two phases: technical discussions in the first phase, followed by conversations at the policy level.
