Islamabad: The ongoing talks between Pakistan and the IMF have entered the second week, where detailed briefings are being given on fiscal policy, tax exemptions and major development projects.
According to sources, the IMF has asked the government for details of all the sectors where tax exemptions or relief have been given. Finance Ministry officials have confirmed that the IMF delegation will be given a briefing on the process of exporting and importing sugar so that its financial impact can be fully analyzed.
It has been further informed that the IMF team will also be given a detailed briefing regarding the Reko Diq project, which will include the possible impact of project financing, local and foreign investment, tax exemptions, royalties and fiscal risks.
Sources say that the IMF has decided to separately review the impact of tax concessions given on the Reko Diq project. The delegation will consider the macroeconomic impacts of the project and potential risks in this regard.
Experts say that if the government maintains a clear stance on its fiscal decisions, it will yield positive results, however, the pressure of IMF conditions may affect the budget strategy.
