ISLAMABAD: Despite disagreements about the need for external finance and losses in the electricity sector, the Pakistani government expects the International Monetary Fund (IMF) to share the proposed memorandum of economic and financial policies (MEFP) with them today, according to The News.
An informal agreement has been reached between Pakistan and the International Monetary Fund (IMF) about the restoration of more than $1.1 billion in funding for the nation.
“Some understanding” has been established with the IMF, according to Minister of State for Finance Dr. Aisha Ghaus Pasha, and the PM has given “some approval” for speeding up a settlement in the coming days.
The IMF requires more information on key areas before moving towards the settlement, Pasha told reporters on the second day of policy-level discussions with the fund. She also stated that the government’s major priority during the negotiations has been to protect the nation and that discussions with the IMF are moving along well.
She responded to a query by saying that the decision on the rate of electricity price rise would be made later. Because the government wanted to safeguard the average person, she said, rates could not be hiked considerably and would be decided later.
The minister expressed confidence that the government would ensure that the program’s burden had the least possible effect on the average person and that those with means should bear a greater share of any increases in electricity prices and taxes, if any were levied.
Contrary to Pasha’s statements, the Pakistani side has found technical negotiations with the IMF to be a nightmare as the lender criticised the performance of the power sector, demanded the removal of subsidies to reduce the circular debt, and imposed new taxes to close the revenue shortfall.
The Finance Division has yet to formally acknowledge any progress in its negotiations with the lender, whether an agreement was struck between the Fund and Pakistani officials or not.
Thursday (today) is the final day of policy-level negotiations, which is significant. Pakistanis are hopeful as Pakistan Has Reached ‘Some Understanding’ With IMF.