Islamabad: The ongoing talks between Pakistan and the International Monetary Fund (IMF) have entered a decisive stage today.
According to sources, the Pakistani economic team is hopeful that these talks will move in a positive direction and the IMF mission will recommend the release of the next tranche.
In the talks to be held today between the Federal Ministry of Finance and the Ministry of Energy, detailed discussions are expected on power sector reforms, line losses, and recovery of electricity bills.
According to sources, the IMF has sought a clear timeframe for the privatization of discos, while Federal Finance Minister Muhammad Aurangzeb will also attend the meeting.
According to FBR officials, today’s meeting will also discuss the transfer of funds under the NFC award to the provinces, and rehabilitation projects in flood-affected areas.
Sources say that the IMF has urged the provinces to fund their development projects from their own resources so that the federal budget surplus targets are not affected.
Meanwhile, the IMF mission will also be briefed on the Reko Diq Copper and Gold Mine Project, the cost of which has now increased to $7.72 billion.
In the first phase, a target of two hundred thousand metric tons of copper production per year has been set, which could become a new source of valuable foreign exchange for the country.
According to sources, the mission will also be briefed on the National Tariff Policy (2025-2030), under which efforts will be made to promote exports and investment by gradually reducing import duties.
The IMF will also be briefed on flood losses, slowdown in growth rate and setting new fiscal targets.
Economic experts say that if these negotiations are successfully completed, it will not only pave the way for the release of the IMF tranche but will also increase the confidence of international financial institutions and investors.
