The government, according to the reports, is likely o share its plan with the mission for taking additional taxation measures.
ISLAMABAD: (UrduPoint/Pakistan Point News-Jan 31st, 2023) Talks between Pakistan and International Monetary Fund (IMF) started today to sign a staff-level agreement on the ninth review under the $7 billion Extended Fund Facility (EFF).
The latest reports said that the IMF’s review mission had arrived in Islamabad on Monday and the both sides were holding the toughest ever parleys for making renewed efforts to accomplish the pending ninth review under the $7 billion EFF.
Finance Minister Ishaq Dar received the IMF mission chief Nathen Porter once he arrived at the Finance Ministry
The government, according to the reports, is likely o share its plan with the mission for taking additional taxation measures.
Both sides will discuss Pakistan’s plan for taking additional taxation measures to fetch over Rs200 billion through a presidential ordinance besides rationalising expenditure and increasing both electricity and gas tariffs for circular debt.
The meeting is taking place at the moment when Pakistan's foreign exchange reserves touched the lowest ebb of $3.6 billion.
According to the reports, Pakistan and the IMF will hold technical-level talks from today to Friday and then the policy-level talks will start finalising the Memorandum of Financial and Economic Policies (MEFP) document.
The IMF further demanded an increase in electricity tariff within the range of Rs12.50/unit while it seemed that Islamabad will to hike the electricity tariff of Rs7.50/unit in a staggered manner.
During the upcomg parleys, the government might be agreed to withdraw the un-targeted power sector subsidies of the electricity and gas sector to powerful groups. The gas tariff woukd also be hiked in the range of 74% for consumers.
