Second tranche: Pakistan, IMF talks begin today

ISLAMABAD: Pakistan and the International Monetary Fund (IMF) will begin their negotiations for the next installment of $700 million today, ARY News reported on Thursday.

An IMF review mission reached Pakistan on Wednesday night to review the country’s economic performance during the first three months of the current fiscal year –from July to September.

According to sources, the review mission will be led by the global lender’s country chief, Nathan Porter.

Pakistan has completed all conditions of the International Monetary Fund (IMF) for the next review talks under the $3 billion standby arrangement (SBA), scheduled to take place in November, sources within the finance ministry told ARY News

Sources said, Pakistan is likely to jack up levy on diesel from Rs55 to Rs60 per litre before the talks with the international lender, while the gas rates have already been raised on the IMF condition.

Pakistan is confident of the completion of the IMF review as conditions set for the first quarter of FY2023-24 have been met by Islamabad, sources said.

The Federal Board of Revenue (FBR) collected tax of Rs2,041 billion from July-September in 2023-24 against the set target of Rs1,978 billion, the sources said, adding that no tax amnesty scheme was released by the country’s supreme tax collection body.

Furthermore, the sources said the government of Pakistan collected Rs222 billion on account of petroleum levy from July to September. The circular debts in the electricity and gas sector have been curtailed.

To meet the conditions of IMF, Pakistan has also jacked up the basic electricity tariff by Rs7.50/ unit, while an almost 200 per cent increase in gas tariff is also notified from November 1.

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