ISLAMABAD: Minister of State for Finance Dr Aisha Ghaus Pasha has stated that the Pakistani authorities have reached an understanding with the International Monetary Fund (IMF) on some matters.
While talking to the media outside the Finance ministry, the Minister of State for Finance said that discussions with the IMF are moving in the positive direction.
Government is asking for major relief for common people as our focus is to put on hold the expected increase in electricity tariff for the time being.
She said that the electricity tariff would be decided later on as we cannot increase adding that we would be able to protect the common man but those who can afford will have to pay more now.
The Minister claimed that “we have reached some understanding and clearance from the prime minister level has also been given on some things”.
She said that the IMF wants more clearance on some issues and Pakistani authorities would satisfy them to reach an agreement.
On the first day of policy level talks, Governor SBP said to have briefed the IMF on external financing before hosting a dinner for the IMF mission.
Sources added that the high-ups from both sides informally held discussions on policy-level topics including the budget deficit, external financing and other key issues.
Sources said that during the technical level talks, the IMF said to have expressed disappointment over the performance of the power sector and wanted withdrawal of Rs 100 billion subsidy provided to the export oriented sector and sought imposition of one percent in general sales tax across the board.
The Fund was not satisfied with the circular debt management plan provided by the government to reduce the power sector circular debt of Rs 952 billion.
The government said to have placed on the table a one off flood levy to mobilize around Rs 180 billion and did not dismiss the possibility of substantial slash in the public sector development program (PSDP) to limit the fiscal deficit.
