Miftah Ismail reaches Washington for talks with IMF

WASHINGTON: Finance Minister Miftah Ismail has reached Washington for talks with International Monetary Fund (IMF) which will continue until April 24, ARY NEWS reported.

Governor State Bank of Pakistan (SBP) Reza Baqir is already in London for talks with the IMF and in case of successful talks, the Fund would release a tranche of US$1 billion.

“Suggestion pertaining to next budget will also come under discussion during the talks as IMF has already demanded an increased tax target for the next fiscal year,” the sources having knowledge of the talks said. “The IMF wants Pakistan to set tax target at Rs7000 billion.”

Moreover, Miftah Ismail will stress upon continuing subsidies on power and fuel prices during talks with the global lender.

Before leaving for Washington, Federal Minister for Finance and Revenue Miftah Ismail said that the government would make all out efforts to restore the Extended Fund Facility (EFF) programme with International Monetary Fund (IMF).

Speaking at ‘Meet the Press’ organized by National Press Club, the finance minister, who was accompanied by Federal Minister Information and Broadcasting, Marriyam Aurangzeb, said that government would do whatever was necessary to restore the programme.

He said the government could reduce public sector development spending with other necessary budgetary discipline arrangements. “We will restore the programme. If government had to tighten its belt, it will do so,” he said adding that no extra burden would be put on people.

He said the government would give a people-friendly and development-friendly budget despite all odds created by the PTI government. He expressed the hope that value of rupee would not slide further while the markets would also perform well.