Pakistan and the International Monetary Fund (IMF) have initiated discussions at the policy level for the next section of the loan program of $ 7 billion. The review process is scheduled to continue until March 14.
According to the Ministry of Finance, the IMF delegation will evaluate Pakistan’s progress in the implementation of economic reforms described in the conditions of the program.
The ongoing conversations at the policy level between the two parties focus on new income measures, energy sector reforms and debt reduction strategies, sources said.
According to officials, discussions include imposing a surcharge of RS2.80 per unit of electricity invoices and introducing a carbon tax on gasoline and diesel vehicles.
It is also considered the levies on foods with food as part of Pakistan’s broader effort to fulfill climatic and fiscal commitments.
Fiscal reforms in the electric vehicle policy are under discussion, and the IMF is expected to push Pakistan to expand its income base.
The privatization of state companies is also part of the agenda, with the IMF that seeks specific short -term plans.
Technical negotiations are expected to lead to a formal statement of the IMF, which describes the key expectations of politics.
The sources indicate that Pakistan may be obliged to take additional fiscal measures to meet the conditions of the lender.
The last conversations occur when Pakistan prepares for the budget of the next fiscal year and seeks to reduce its circular debt in the electricity sector. According to reports, the IMF has urged the authorities to demonstrate stronger commitments before releasing the next section.
Last week, the IMF mission arrived in Pakistan to officially initiate discussions for the first review of the installation of extended funds (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.
In addition, the Federal Government also presented a proposal to the IMF to review the electric tariffs for solar panel owners using net measurement.
The plan includes the purchase of surplus electricity generated by solar users at a significantly lower rate, which reduces it from the current RS27 per unit to approximately RS10 per unit.
