ISLAMABAD (INP): Policy-level talks between Pakistan and the International Monetary Fund (IMF) review mission continued on Tuesday, with a focus on reforms in government institutions, privatization, revenue, expenditure, dollar inflows, institutional reforms, non-subsidy in the energy sector during the debt program, measures to reduce the budget deficit, power sector and petroleum sector.
According to media reports, the United Arab Emirates (UAE) has assured Pakistan of external financing and investment, according to sources who attended an important meeting between the IMF Review Mission and the Ambassador of UAE to Pakistan. The meeting discussed the assurances to be given by friendly countries on external financing by Pakistan. The IMF has not demanded any new taxes from Pakistan, but has demanded that the country achieve its tax target for the current fiscal year. Pakistan is hopeful of a successful completion of the first review of the IMF’s loan program.
According to sources in the Ministry of Finance, Pakistan has provided the IMF with a written plan for achieving the tax target of Rs 9415 billion.
The plan also includes measures to eliminate tax evasion from the real estate sector. The Pakistani team, led by caretaker Finance Minister Shamshad Akhtar, also briefed the IMF on reforms in government institutions, the progress of the privatization program, and the National Clean Air Policy, National Climate Finance Strategy, exchange rates, Sukuk bonds for new debt, T-bills, and issuance of investment bonds.
The talks between Pakistan and the IMF are likely to continue till November 15. If successful, Pakistan will get the next installment of about $71 million from the IMF’s loan program. Final approval in the case of a staff-level agreement will be given by the IMF’s Executive Board. The UAE has not disclosed the specific amount of external financing and investment that it has assured Pakistan, but the support is likely to be significant. The UAE has a close relationship with Pakistan and has been a major investor in the country in recent years.
The UAE’s support is significant for Pakistan as it comes at a time when the country is facing economic challenges. The IMF’s loan program is crucial for Pakistan to meet its external financing needs and to stabilize its economy. The UAE’s support will also help to boost investor confidence in Pakistan and attract more foreign investment.
