ISLAMABAD: The International Monetary Fund (IMF) delegation has assured Finance Minister Muhammad Aurangzeb of its commitment to supporting Pakistan’s economy as negotiations near completion.
According to sources, Friday (today) is the final day of discussions between the IMF delegation and Pakistan’s economic team. During their visit to the Ministry of Finance, IMF representatives commended the government’s economic team for their efforts and policy measures.
Aurangzeb reaffirmed Pakistan’s commitment to implementing all agreed-upon economic targets, stressing that “there will be no violations of these targets while remaining within the loan program framework.”
Privatization and Revenue Measures
On March 11, the government informed the IMF that it plans to privatize seven state-owned enterprises, including Pakistan International Airlines (PIA), to fulfill the requirements of the $7 billion loan program.
Earlier, on March 7, the IMF rejected Pakistan’s proposal to eliminate the goods and services tax (GST) on electricity bills, emphasizing the need for immediate cost-cutting measures. The global lender has asked Pakistan to present a detailed plan to address the revenue shortfall in the next quarter.
The IMF mission arrived in Islamabad on Monday for its biannual review of the bailout deal.
IMF Demands
The IMF has called for the removal of tax exemptions on solar panels and electric vehicles, arguing that these benefits primarily favor wealthier consumers. Additionally, it has recommended eliminating tax breaks on spare parts for electric vehicles.
The organization has also stressed the importance of maintaining strict economic discipline in all financial matters.
