Pakistan–IMF 'reach agreement' on most import policy points

Negotiations between Pakistan and the International Monetary Fund (IMF) have entered their final phase, with both sides reportedly reaching agreement on most points related to import policy orders, ARY News reported on Wednesday, citing sources.

According to sources, the IMF has urged Pakistan to impose a complete ban on car imports under personal capacity, while granting conditional approval for the import of commercial vehicles up to five years old.

It has been agreed that the conditions for vehicle imports will be tightened further and aligned with security and regulatory standards.

Both sides have also ‘agreed’ to ban car imports under personal baggage and transfer of residence schemes, sources added.

Furthermore, the gift and baggage import schemes are set to be abolished, while the IMF mission has given Pakistan a deadline of October 15 to revise and strengthen the Transfer of Residence scheme.

On the issue of good governance and the anti-corruption report, sources said a deadlock persists.

Pakistan has reportedly requested the IMF not to withdraw incentives from Special Economic Zones (SEZs). However, the IMF has demanded the gradual removal of SEZ benefits, and a 10-year phase-out plan has been prepared in response.

If the IMF refuses to accept the proposal, all SEZ incentives may be withdrawn, sources warned.

Talks have also progressed on the $1.4 billion Resilience and Sustainability Facility for climate change adaptation, with positive prospects for the release of the first $400 million tranche soon.