Image default

Talks with IMF moving in positive directions, Minister

Minister of State for Finance Dr Aisha Ghaus Pasha said that discussion with the International Monetary Fund (IMF) are moving in the positive direction and government efforts no least lease impact on the common man.

Talking to media outside the finance ministry she said that government focus has been that the decision about increase in rate of electricity would be taken later on.

She said that rates would be decided later on as these cannot be increased much because government wanted to protect the common man. The Minister said that she was confident that it would be able to protect so that the least possible programme burden on the common man and more burden is on those who can afford to pay more. The Minister said that “we have reached some understanding and clearance from the prime minister level has also been given on some things”. She said that IMF wants more clearance on some issues and Pakistani authorities would do so.

This she stated during the second day of policy level talks between the IMF and Pakistani authorities which are said to have been entered into crucial phase

On the first day, governor SBP said to have briefed the IMF on external financing before hosting a dinner for the IMF mission. Sources added that the high-ups from both sides informally held discussions on policy-level topics including the budget deficit, external financing and other key issues.

During the technical level talks, the IMF said to have expressed disappointed over the performance of power sector and wanted withdrawal of Rs 100 billion subsidy provided to export oriented sector sought imposition of one percent in general sales tax across the board.

The Fund was not satisfied with the circular debt management plan provided by the government to reduce the power sector circular debt of Rs 952 billion. The government said to have placed on the table one off flood levy to mobilize around Rs 180 billion and did not dismissed the possibility of substantial slash in the public sector development program (PSDP) to limit the fiscal deficit.

Related posts

Pakistan’s Trade Deficit Narrows by 40% in 10 Months of FY23


$4.85 bln import bill registered in January despite complaining against opening of LCs


Advisory Committee reconstituted to help Planning Ministry in policy formulation


Leave a Comment