ISLAMABAD- The dialogue between Pakistan and the International Monetary Fund (IMF) continued, with the IMF seeking a detailed report on the losses incurred by state-owned enterprises.
Talks commenced on November 2 under a nine-month stand-by arrangement (SBA) valued at $3 billion, approved in July. The discussions extended into Monday in Islamabad, with the IMF holding the release of a second tranche, approximately $700 million, contingent on their satisfaction with Pakistan’s economic performance.
An official source revealed that the visiting IMF delegation had expressed interest in receiving comprehensive insights into the losses suffered by state-owned enterprises. Additionally, both parties conducted an evaluation of the Central Monitoring Unit, established to monitor the losses incurred by national institutions. The Central Monitoring Unit team is expected to submit their initial review report to the IMF delegation.
Pakistan’s government has given assurance to the IMF that it will furnish the new report by the coming month. In earlier negotiations last week, Pakistan and the IMF had discussed the tax collection efforts of the Federal Board of Revenue (FBR). The FBR committed to achieving the tax collection target of Rs9,415 billion for the current fiscal year and shared a progress report on pending tax cases. According to officials from the tax collection department, Pakistan has already collected Rs2,748 billion in the first four months of the ongoing fiscal year. The IMF is now seeking a comprehensive plan to collect the remaining Rs6,670 billion by June 2024.
Earlier in the ongoing technical-level discussions, the IMF had also requested Pakistan to share a report on potential tax collection from all sectors. The discussions included updates on the power sector’s circular debt, in alignment with the indicative targets, as the consumer-end tariff had been recalibrated in July, as mandated by the structural benchmark. The outcome of these deliberations will play a crucial role in Pakistan’s financial outlook and its ongoing partnership with the IMF.
Via: The Nation