Pakistan, IMF talks begin today

Islamabad: Pakistan and the International Monetary Fund (IMF) will begin their negotiations for the next installment of $700 million today.

Pakistan was visited by an IMF review team on Wednesday night in order to assess the nation's economic performance in the first three months of the current fiscal year, which runs from July to September.

According to sources, the review mission will be led by the global lender’s country chief, Nathan Porter.

Pakistan has fulfilled all requirements set forth by the International Monetary Fund (IMF) for the next review talks under the $3 billion standby arrangement (SBA), which are slated to occur in November, according to sources in the finance ministry who spoke with ARY News.

While gas prices have already increased in accordance with IMF requirements, sources claim Pakistan may increase the diesel charge from Rs55 to Rs60 per litre prior to the negotiations with the international lender.

Pakistan is optimistic that the IMF assessment would be completed because, according to sources, Islamabad has fulfilled the requirements for the first quarter of FY2023–24.

The Federal Board of Revenue (FBR) collected tax of Rs2,041 billion from July-September in 2023-24 against the set target of Rs1,978 billion, the sources said, adding that no tax amnesty scheme was released by the country’s supreme tax collection body.

Furthermore, the sources said the government of Pakistan collected Rs222 billion on account of petroleum levy from July to September. The circular debts in the electricity and gas sector have been curtailed.

Pakistan has increased the basic electricity cost by Rs7.50 per unit in order to comply with IMF requirements. Effective November 1, there will also be an almost 200 percent rise in the gas tariff.