IMF-Pakistan agreed over almost all points: sources

ISLAMABAD: Final round of talks between the IMF and will be held today as the sides agreed over almost all points, citing sources ARY News reported on Wednesday.

Sources at the finance ministry said that the dialogue with the International Monetary Fund (IMF) has been nearing to a successful end.

“Policy level dialogue on power subsidy has also been successful,” sources said. “Caretaker government will not basic tariff of electricity, which will not be enhanced till March,” sources shared.

“The IMF has demanded temporary surcharge to unburden circular debt and stressed for imposition of per unit 95paisa surcharge,” according to sources.

“With the final round of policy level talks with IMF today, the review will come to an end,” sources said.

Finance Ministry’s sources said that the talks success has been conditioned with satisfaction of the IMF and it has to be decided by the monetary fund.

“The staff level agreement will take place between Pakistan and the IMF after successful completion of talks,” sources shared.

The ministry’s sources said that the IMF mission has expressed reservations over Pakistan’s need of foreign financing, while also apprehending failing to achieve the current fiscal year’s tax recovery target.

“The IMF has also raised questions with regard to the SIFC”, sources said. “The government has tried to address the objections raised by the IMF mission,” sources added.

Under the $3 billion Standby Arrangement (SBA), Pakistan received $1.2 billion from the IMF as the first tranche in July.

A successful review would unlock $710 million second tranche of the loan in December.