Pakistan and the IMF have once again failed to reach an agreement at the staff level on time due to differences over the standard framework and uncertainty over the future roadmap of the economy.
A new round of talks from October 4 to 15 to issue the next tranche of a ڈالر 1 billion loan and get a certificate of better economic condition was fruitless. Despite leaving, negotiations failed.
However, the two sides have vowed to continue the talks. In an effort to end the talks positively, Finance Minister Shaukat Tareen met separately with IMF Managing Director Kristalina Georgieva and US Assistant Secretary of State for South and Central Asian Affairs Donald Lowe. However, it seems that both these meetings did not prove fruitful.
“The IMF team is engaged in advancing our agenda in talks with the Pakistani delegation and we are in talks with the Pakistani authorities on policies and reforms,” Teresa Dobbins Sanchez, the outgoing IMF representative for Pakistan, told the Express Tribune. Looking forward to the continuation that could be the basis for the completion of the 6th review.
This is the second time that Pakistan and the IMF have failed to reach the “basis for completion of the Sixth Review”. The effort was also fruitless in June. P), which forms the basis of the bailout program.
Sources told the Express Tribune that the parties have not yet exchanged final macroeconomic positions, which should have been completed by October 8. Uncertainty over the IMF talks could affect stock markets and the value of the rupee and the dollar. It can put more pressure.
The sources added that Pakistan and the IMF could not agree on a target for additional taxes and a roadmap for the financial stability of the power sector. Came.
Talks began in Islamabad on October 4, Shaukat Tareen wanted the talks to end in Washington on October 15, Pakistan has shared electricity and gas tariffs and tax collection figures with the IMF, and Finance Minister Shaukat. “IMF officials are reviewing the figures and will keep us informed,” Tareen told a news conference in Washington.
It should be noted that these figures are usually agreed upon before the start of policy talks. However, the two sides did not exchange important budget figures because of the significant differences between the two sides.
Sources said that the IMF had demanded an additional tax of at least 1% of GDP or more than Rs 525 billion but the government is willing to impose a tax of Rs 300 billion, talks on the target of additional tax. The FBR will achieve its tax collection target of Rs 5.8 trillion this year. In the next financial year, the tax-to-GDP ratio will be 13.75 percent of GDP. At the end, the tax-to-GDP ratio was only 11.1%.
Shaukat Tareen said during his news conference that Finance Secretary Yousuf Khan would stay in Washington till Tuesday to continue the talks. He was scheduled to return to Pakistan on Monday. The Finance Minister said that he would be in New York but needed. So join the online negotiations.
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