ISLAMABAD: The second round of talks between Pakistan and the International Monetary Fund (IMF) Mission regarding the final tranche under the loan program will take place today. The agenda primarily centers on pivotal economic reforms, notably the privatization of state-owned enterprises.
Scheduled for today’s meeting are briefings from various institutions, including the Ministry of Finance and the Federal Board of Revenue (FBR), for the visiting IMF delegation.
The IMF has raised concerns over the adequacy of the 42.5% funds held by the federation under the National Finance Commission Award and has called for a review alongside the provinces.
Emphasizing the need for a comprehensive plan, the IMF representatives have urged Pakistan to outline strategies for the privatization of entities such as Pakistan International Airlines (PIA). Sources suggest that discussions may lead to a term sheet agreement for the privatization of PIA, with a potential interest rate of up to 12%.
Upon finalization of the loan term sheet agreement, banks are anticipated to issue a No-Objection Certificate (NOC). Furthermore, discussions will cover domestic financing, government guarantees, and associated expenses related to privatization endeavors.
Meanwhile, the FBR will engage in discussions with the IMF on tax policies, administration, and revenue generation strategies.
In addressing concerns regarding the energy sector’s performance, discussions between Pakistan and the IMF will encompass topics such as circular debt and power purchase agreements. Efforts will be made to mitigate circular debt, ensure timely adjustments, and consider tariff adjustments.
The agenda also includes discussions on fiscal deficit control, future budget strategies, and immediate measures to counter potential reductions in tax collection.
In alignment with efforts to enhance transparency and combat corruption, plans to introduce new plastic currency notes by the State Bank of Pakistan will be presented to the IMF delegation. Progress on issuing reports under the United Nations Anti-Corruption Convention will also be shared during the discussions.
