ISLAMABAD, MAR 15: The second round of talks between Pakistan and the International Monetary Fund (IMF) for the final tranche under the loan programme is set to take place today, with discussions focusing on crucial economic reforms, including the privatization of state-owned enterprises.
During today’s meeting, officials of various institutions, including the Ministry of Finance and FBR, are scheduled to brief the visiting delegation.
The IMF has declared 42.5% funds held by the federation under the National Finance Commission Award as insufficient and called for a review along with the provinces.
The IMF representatives have urged Pakistan to present a comprehensive plan for the privatization of Pakistan International Airlines (PIA) and other government-owned enterprises. Sources reveal that the IMF team will be briefed about the terms and conditions of loans between banks and the government for privatization purposes.
There is a possibility of reaching a term sheet agreement for the privatization of PIA, with an interest rate of up to 12%, the sources reveal.
Once the loan term sheet agreement is finalized, banks are expected to issue a No-Objection Certificate (NOC). Additionally, the sources said, the IMF delegation will be briefed on domestic financing, government guarantees, and other associated expenses related to privatization efforts.
Furthermore, the Federal Board of Revenue (FBR) will hold talks with the IMF tax policies, administration, and revenue generation.
However, Energy Ministry sources have reported that the IMF has expressed dissatisfaction with the performance of the country’s energy sector, prompting discussions between the two sides on topics such as circular debt and power purchase agreements.
The discussions will also revolve around reducing the circular debt of the energy sector, making adjustments on time, and raising the tariff. The sources said the talks will also focus on fiscal deficit control, future budget strategies, and immediate measures to address potential reductions in tax collection.
In a bid to enhance transparency and combat corruption, the State Bank of Pakistan is also scheduled to brief the IMF delegation on plans to issue new plastic currency notes. Furthermore, progress on issuing reports under the United Nations Anti-Corruption Convention will also be shared during the discussions.
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