IMF delegation set to visit Pakistan for new loan programme

Islamabad: A delegation from the International Monetary Fund (IMF) is set to visit Pakistan later this month for discussions on a new, extensive loan program aimed at assisting the government in repaying significant debts due this year, the sources disclosed on Wednesday.

The sources said that the discussions, scheduled in two phases, will involve technical-level talks followed by policy-level negotiations between Pakistan and the IMF.

Ahead of these talks, Pakistan confronts substantial economic hurdles, including the setback of a failed tax amnesty scheme proposed by the IMF. The scheme aimed to bring 3.1 million traders into the tax net but has fallen short of expectations. Complicating matters, the Federal Board of Revenue (FBR) is grappling with an unusual situation following recent changes in senior officials.

The relatively inexperienced FBR team faces the challenge of negotiating with the IMF, which is also apprehensive about the recent decline in tax collections by the FBR.

Furthermore, the failure to achieve the primary budget surplus target in the first nine months will also feature prominently in the agenda of the upcoming talks, they added.