Pakistan to 'seek' relief in IMF review talks amid floods

ISLAMABAD: The Pakistan government has initiated efforts to secure maximum relief during the ongoing review talks with the International Monetary Fund (IMF), ARY News reported on Friday, citing sources.

As per details, Prime Minister Shehbaz Sharif has directed the authorities to negotiate broader concessions amid floods and heavy rains during the upcoming review talks with IMF, sources said.

According to sources, the government aims to prevent the imposition of a mini-budget by proposing alternative revenue measures. Strict enforcement of existing tax steps will be presented as a substitute to satisfy IMF concerns.

The Ministry of Finance is also preparing to convince the IMF to allow relief in light of the damages caused by recent floods.

Special focus will be on easing the burden of electricity bills for flood-affected households, as well as seeking concessions in the repayment of agricultural loans.

Read more: Pakistan ‘prepares’ for IMF review talks under EFF program

Officials will request a downward revision of the Federal Board of Revenue’s (FBR) tax targets, citing shortfalls linked to flood-related disruptions, sources said.

A detailed briefing will be given to the IMF on the decline in tax collections and the impact of natural disasters on fiscal performance.

Discussions will also include the possibility of revising the GDP growth target slightly downward, while persuading the IMF to allow room for not imposing new taxes.

Consideration may also be given to an increase in federal expenditures due to rehabilitation and reconstruction needs following the floods, informed well-placed sources to ARY News.