Pakistan and the IMF held virtual talks in which the government assured the IMF of meeting tax collection targets including petroleum levy and gas price hike, while the IMF demanded an end to electricity subsidies. .
Sources in the Ministry of Finance say that the Pakistani team was led by Finance Secretary Hamid Yaqoob Shaikh while the IF team was headed by Nathan Porter, the head of the review mission, in the virtual talks with the IMF review mission of Pakistan.
Sources say that the IMF was also apprised of the details of the expenditure on flood-related projects. After significant progress in the virtual talks with the IMF, physical talks with the IMF are likely to be scheduled to complete the economic review and put the program back on track, and it is expected that the IMF this week. There will be significant progress regarding the schedule.
Sources say that in the talks, the IMF was briefed about the country’s current economic situation and economic indicators. Apart from this, the revenue initiatives under consideration to achieve the target of tax collections set for the current financial year and important decisions expected in the energy sector were also informed.
According to the sources, the Pakistani delegation informed the IMF officials about the expected decision to increase gas prices soon. The delegation said that the increase in gas prices will take place from July 1, 2022. Besides, the revolving credit of the gas sector is also being abolished, the levy on petroleum products is also being increased in a phased manner.
According to sources, the IMF demanded that Pakistan should not artificially depreciate the rupee, end subsidies on electricity, take measures to increase the tax-GDP ratio, exempt various sectors. should also be eliminated.
Sources say that the IMF is likely to talk to the officials of the Ministry of Finance this week. The officials of the Ministry of Finance will take the IMF into confidence on all the goals. There is a possibility of
