Islamabad: The talks between Pakistan and the International Monetary Fund (IMF) starting tomorrow will focus on fiscal discipline, tax collections and energy sector reforms. Pakistani officials will brief the international financial institution on the budget situation, foreign exchange reserves and measures to increase revenues.
According to sources in the Ministry of Finance, the talks will also discuss the Sovereign Wealth Fund, circular debt in the power sector and the reasons for not deregulating the sugar industry. The current account deficit, primary budget surplus and exchange rate situation will also be reviewed.
Tax system reforms will be an important part of the talks. The Federal Board of Revenue (FBR) will brief the meeting on the performance of its policy and operations wings. During this time, measures to expand the tax net and improve revenue collection will be discussed.
The issue of circular debt in the energy sector will also come under discussion. The Ministry of Energy will present details of ongoing reforms and debt reduction measures in this regard. NAB and FIA will brief the meeting on measures taken to prevent money laundering and terrorist financing.
Provincial financial issues also play an important role in the talks. According to sources, the IMF will discuss measures to increase tax and non-tax revenue with the governments of Punjab and Khyber Pakhtunkhwa. Tax collection on agricultural income will also be part of these talks.
Earlier, the IMF mission held meetings with the Sindh government and State Bank officials in Karachi. The Sindh government informed the mission that it has provided a surplus budget to the federation as per the set target. The province’s tax revenue stood at Rs593 billion as of June 30, while non-tax revenue doubled to over Rs80 billion.
The State Bank briefed the mission on the situation of foreign exchange reserves, monetary policy, imports and foreign exchange. According to sources, the IMF mission expressed satisfaction with the central bank’s briefing.
After a week-long stay in Karachi, the IMF delegation has reached Islamabad. The talks will begin with a meeting with the Finance Minister and his economic team. The talks will review economic data up to June 30.
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