The first round of talks between Pakistani authorities and the International Monetary Fund (IMF) review mission led by Nathan Porter was held at the Ministry of Finance today.
Finance Minister Muhammad Aurangzeb and key members of the economic team engaged with the IMF delegation. Governor State Bank of Pakistan (SBP), Minister of Energy, Chairman Federal Board of Revenue (FBR), and other officials were present at the introductory session.
Separate meetings were also scheduled for detailed discussions with the lender’s mission and the Finance Minister, SBP Governor and Energy Minister.
Aurangzeb is set to outline the government’s priorities for the final IMF review.
25 out of 26 IMF targets have been successfully met.
Key achievements include refraining from obtaining loans from the central bank and ensuring timely external payments. Sources said outstanding arrears in the power sector, including tax dues and refund payments, have been promptly addressed.
They said Pakistan has strictly adhered to IMF conditions regarding tax exemptions and amnesty, maintaining stability in the currency exchange rate with a consistent 1.25 percent margin between interbank and open market rates.
The government has also met requirements on the timely revision of electricity rates and adjustments in gas prices, crucial steps in aligning with IMF directives.
The Ministry of Finance will present a comprehensive report to the lender’s team detailing the implementation of all targets. However, some outstanding tasks remain, including the amendment of certain laws such as the SOE law, as well as legislation related to entities like the National Highway Authority, Pakistan Post, and Pakistan Broadcasting Corporation.
The SBP Governor and Energy Minister will provide further insights into the implementation of IMF targets during their respective briefings with Porter’s team.
It bears mentioning that talks between Pakistan and the IMF under the standby arrangement will continue till March 18. Pakistan is expected to receive a $1.1 billion tranche following the completion of the current review. Following the staff agreement, which is likely next week, the IMF Executive Board will approve the final disbursement to Pakistan.
