Pakistan and the International Monetary Fund (IMF) officially launched discussions for the first examination of the facility of the extensive fund 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.
During the meeting, Pakistan assured the world lender of its commitment to tax discipline and economic reforms while talks continue in Islamabad for the last economic review.
The Minister of Finance Muhammad Aurangzeb informed the IMF delegation on the macroeconomic situation, the collection of income and the country’s progress on structural reforms. He reiterated that Pakistan remains determined to fulfill the conditions of its $ 7 billion loan program.
Discussions covered Pakistan’s economic performance in the first half of the current financial year, those responsible for data deficit, primary balance, income collection and provincial surpluses. The IMF team also examined the expenses of the Pakistan Public Sector Development Program (PSDP) and the proposed budget adjustments.
Officials from the Ministry of Finance, the Planning Commission and the Federal Board of Return (FBR) participated in talks, providing an overview of the tax and public spending efforts.
The IMF delegation was also informed of the Green Initiative of Pakistan, highlighting the budgetary strategies linked to climate change.
The meeting was followed by senior IMF officials, notably the director of the examination mission Nathan Porter.
The Pakistani authorities have assured the delegation that the structural tax reforms and the energy sector are being implemented to ensure economic stability.
Sources indicate that the IMF should present its recommendations for the next federal budget in Pakistan.
The Ministry of Finance has already submitted a compliance report describing the progress of loan conditions, including measures to control the budget deficit and improve external financing.
The IMF team will continue discussions with other ministries and financial institutions before concluding the examination process.
The Pakistan agreement with the IMF remains crucial because it requires other loan disbursements within the framework of the program to stabilize exchange reserves and maintain the confidence of investors.
Previously, the IMF called for a repression of tax evasion in the real estate sector of Pakistan while the negotiations begin to release a loan section at 1 billion dollars in Islamabad.
This request is part of the current discussions aimed at ensuring the next tranche of the 7 billion dollars loan program.
In the context of the plan, the authorities intend to take measures against the persons involved in the declaration of false properties, with sanctions, in particular imprisonment and fines.
Agents who fail to record properties could incur fines of up to 500,000 rupees, while that which provides false information could be sentenced to a fine between 200,000 rupees and 500,000 rupees.
The real estate regulatory authority will be empowered to impose prison terms of up to three years.
Negotiations for the loan tranche will continue until March 15, 2025 and are divided into two phases: technical discussions in the first phase, followed by talks in terms of politics.
