Talks between Pakistan and the International Monetary Fund (IMF) began in Islamabad to discuss a new long-term debt program and budget, the government’s assurance of not borrowing from the central bank and timely external payments. has been done
The IMF mission has reached the Finance Ministry for talks with the government’s economic team. According to Finance Ministry sources, a ten-member IMF mission is holding talks in the first introductory session.
It should be noted that Pakistan is hoping for a bailout package of more than 6 billion dollars. The IMF has called on Pakistan to revoke its discretionary powers to grant tax incentives, including a proposal to abolish all tax incentives in the Income Tax Ordinance.
The IMF has asked Pakistan to bring changes in the tax laws of NGOs, charitable organizations, pensioners and to practically end the special tax regime of the construction sector as soon as possible.
He assured not to borrow from the central bank in the next financial year
Sources familiar with the discussions between the finance ministry and the IMF mission in Islamabad on key budget targets said that the government has assured not to borrow from the central bank in the coming financial year.
According to the sources, there has been an agreement between the government and the IMF on timely external payments and the government has said that FB Artex will be bound to make timely refunds. Besides, there will be issuance of global market bonds for improvement of foreign exchange reserves and payments.
Completed all the working for the new loan program
In this regard, the sources further said that the economic team will negotiate on the new program, budget, all the working for the upcoming federal budget and new loan program has been completed by the government.
Sources say that working papers have been prepared for the extended fund facility loan programme. During the negotiations, the size and duration of the upcoming program will also be decided.