Privatization tops agenda as Pakistan, IMF talks enter second phase

ISLAMABAD: Pakistani delegation will initiate the second round of talks on policy issues with the International Monetary Fund from Monday as two sides would discuss issues pertaining to steps required to fulfil revenue targets set by the fund for release of the third tranche of US$6 billion loan, ARY NEWS reported.

According to sources in the finance ministry, the Pakistani delegation would be led by Secretary Finance Naveed Kamran along with the officials from finance ministry, Federal Board of Revenue (FBR), energy department, NEPRA, OGRA and privatization department.

“The FBR will seek relief in the tax collection amount from the fund as new taxes and any increase in interest rates will further raise inflation in the country,” they said.

The finance authorities said that the IMF officials were unhappy over below-target tax collection and is not in favour of lowering tax targets for the ongoing fiscal year.

They said that in order to fulfil tax revenue targets, the government would seek an increase in the non-tax revenue and top priority in this regard is the privatization of institutions suffering from losses.

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“Initially six institutions will be privatized followed by 27 others,” they said.

The finance ministry officials further said that there would be no increase in the prices of gas and electricity in the country and this decision is further conveyed to the IMF authorities.

“We will be devising a comprehensive system for making any changes in the prices of electricity and gas,” the officials said.