The International Monetary Fund (IMF) has demanded Pakistan to present a comprehensive plan on the privatization of Pakistan International Airlines (PIA) and other state-owned enterprises, well-informed sources told ProPakistani.
Sources said the lender’s demand comes as talks heat up between the federal government and banks to finalize the terms of a loan agreement for the privatization of PIA. Sources have hinted at the possibility of an agreement on an interest rate of up to 12 percent through term sheets with commercial banks.
Once the loan term sheet agreement is settled, banks will issue No Objection Certificates (NOCs) to proceed with the process.
Elsewhere, discussions are set to take place with the Federal Board of Revenue (FBR) on tax policies, administration, and revenue generation. Sources said the IMF will be briefed on contingency plans to mitigate any slump in revenue.
Sources said there was an air of dissatisfaction coming out of the IMF camp about the performance of Pakistan’s energy sector. The lender will meet Ministry of Energy officials on issues of circular debt and untenable power purchase agreements.
Sources added that talks until Monday will also cover strategies to manage the fiscal deficit and prepare for the upcoming federal budget.
Other topics on the agenda include updates on the State Bank of Pakistan’s initiative to introduce new polymer banknotes and progress reports on Pakistan’s compliance with the United Nations Anti-Corruption Convention.
Talks between Pakistan and the International Monetary Fund (IMF) enter a second day with a range of critical economic matters under extensive review.
The IMF Mission is busy meeting officials from various institutions, including the Ministry of Finance, FBR, and the Ministry of Energy. The lender is also expected to receive briefings on various domestic financing aspects, including government guarantees and expenditures in vital sectors like health and education.
Pehle forsat me private karna chahye
what if PIA employees go to court and take stay order things are not easy not easy to privatize things.
Everyone knows that the Pakistani court has no law and is useless