ISLAMABAD: Senior International Monetary Fund (IMF) and Pakistan government officials are removing differences in budgetary numbers, expecting a breakthrough in loan resumption next week.
In order to convince the IMF to resume the stalled $6 billion programme, the government took the toughest measures to end fuel subsidies and increased the prices of petroleum products to unprecedented levels.
Senior officials said the IMF staff had not yet shared the first draft of the Memorandum of Financial and Economic Policies (MEFP) with Pakistani authorities and a decisive meeting is being held today to sort out issues.
Officials said the sharing of the draft MEFP is a prerequisite for moving towards the signing of the staff-level agreement as it provides the basis of a framework on which both sides evolve consensus sign it. The the draft is presented before the IMF’s Executive Board for seeking approval for completion of pending review and release of the next tranche.
An official said that Finance Minister Miftah Ismail held a virtual meeting with the IMF’s mission chief, which was also attended by the IMF director dealing with Pakistan on Friday evening in which and both sides made some progress toward evolving a consensus on MEFP.
Meanwhile, finance minister and state minister for finance also held a meeting with the US ambassador Donald Blome on Thursday to seek the US support for the early resumption of IMF loan.
So far, the outstanding issues between the IMF and government are revised rates of personal income tax (PIT) for salaried class, projection of petroleum levy to the tune of Rs750 billion, working out of power sector subsidies as well as Utility Stores Corporation (USC) subsidies in new budget for 2022-23.
