Pakistan and the International Monetary Fund (IMF) have launched political discussions for the next tranche of the 7 billion dollars loan program. The examination process should continue until March 14.
According to the Ministry of Finance, the IMF delegation will assess the progress of Pakistan in the implementation of economic reforms described under the conditions of the program.
The current discussions in terms of policy between the two parties focus on new income measures, energy sector reforms and debt reduction strategies, sources said.
According to managers, discussions include the imposition of an RS2.80 supplement per unit on electricity bills and the introduction of a carbon tax on petrol and diesel vehicles.
It is also taken into account of the samples on coal factories in the context of the wider efforts of Pakistan to respond to climate and budgetary commitments.
The tax reforms of the electric vehicle policy are under discussion, the IMF should push Pakistan to extend its income base.
The privatization of public enterprises is also part of the agenda, the IMF looking for short -term concrete plans.
Technical negotiations should lead to an official IMF declaration, describing the main political expectations.
Sources indicate that Pakistan may be required to take additional tax measures to meet the lender’s conditions.
The latest discussions arise as Pakistan is preparing for the budget for the next exercise and seeks to reduce its circular debt in the electricity sector. The IMF would have urged the authorities to demonstrate stronger commitments before publishing the next tranche.
Last week, the Mission of the IMF arrived in Pakistan to officially initiate discussions for the first examination of the prolonged fund of funds of $ 7 billion (EFF) guaranteed last year.
According to the Ministry of Finance, the IMF delegation, led by Nathan Porter, met the Minister of Finance Muhammad Aurangzeb in Islamabad. The meeting focused on the country’s overall economic situation.
In addition, the federal government also presented a proposal to the IMF to revise electric prices for solar panel owners using the net measurement.
The plan includes the purchase of excess electricity generated by solar users at a significantly lower rate, by reducing it from the RS27 per current unit to approximately RS10 per unit.
