ISLAMABAD – Pakistan and International Monetary Fund (IMF) would start policy level talks in Washington next week after talks at the technical level between the two sides remained inconclusive.
Federal Minister for Finance Shaukat Tarin, Governor SBP Dr Reza Baqir, and secretary finance would participate in the talks with IMF in Washington. Pakistan and IMF are holding talking for finalizing an agreement on completion of sixth and seventh reviews under the $6 billion Extended Fund Facility (EFF). The policy level talks would remain from October 13 to October 15.
Early, in virtual technical level talks, both sides failed to make an agreement on several issues including increasing power tariffs and taxes. Pakistan is not accepting the IMF’s direction of increasing power tariff and enhancing burden on existing taxpayers of the country. “The government would present its plans to the IMF for increasing tax
collection as well as controlling circular debt of the power sector,” said an official of the Ministry of Finance. He further said that there is no need to increase taxes as Federal Board of Revenue has already surpassed the tax collection target in the first quarter of current fiscal year. The FBR has surpassed the tax collection target by Rs186 billion in the first quarter (July to September) of the current fiscal year.
Officials informed that both sides would finalize the tax collection target in the upcoming policy level talks.
Similarly, Pakistan would present its plan to control the soaring circular debt of the power sector instead of increasing tariff.
The World Bank in its recent report noted that the 39-month IMF-Extended Fund Facility (IMF-EFF) is likely to resume in FY22 with the 6th Review mission expected in October 2021.
https://nation.com.pk/10-Oct-2021/pak-imf-talks-to-be-held-in-us-next-week
