Pakistan holds policy-level talks with IMF in Doha today

By: 24 News
Published: 03:18 PM, 23 May, 2022
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Caption: File photo.
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Policy-level talks between Pakistan and International Monetary Fund will kick off later today (Monday) in Doha, reported 24NewsHD TV channel.

Sources divulged that before engaging into policy-level talks, the Pakistani delegation led by the finance secretary had completed the technical-level talks with the officials of international money lender. 

In the forthcoming policy-level parleys, Finance Minister Miftah Ismail and State Bank Acting Governor would participate. Earlier, the finance minister flew to Doha for this purpose.

Sources said that the IMF was pressuring government to abolish the petrol subsidy and increase policy rate by minimum one percent. 

Pakistan has also been asked by the IMF to privatize the loss-making state entities. The Fund is also exerting pressure to sell immediately two state-run power houses. 

The government also has to inform the IMF about the next fiscal year’s budget proposals. 

It has been learnt that the IMF is all set to ask policymakers for further tightening of fiscal and monetary policies. It will recommend taking additional taxation measures in the upcoming budget.

The policy-level negotiations will be concluded on May 25 and in case of success of the talks, a joint statement will be issued. 

Pakistan has requested the IMF to extend the loan programme by one year and increase the size of loan from the agreed $6 billion to $8 billion. 

The finance ministry said that if parlays remain successful then the delegation would request the Fund to release $1 billion tranche of the Extended Fund Facility and Pakistan could receive this tranche in mid-July.

Pakistan started technical-level talks with the IMF on April 18 in which finance minister Ismail and others participated virtually. 

Reporter Waqas Azeem