Nation to hear good news about IMF programme soon: Ishaq Dar

Finance Minister Ishaq Dar said on Thursday negotiations between Pakistan and the International Monetary Fund (IMF) are "on track" and “we will announce good news soon”, reported Aaj News.

Speaking to the media, he said talks between the two sides had entered the final round, progress has been "satisfactory" and he hopes discussions will wrap up today.

Earlier on Wednesday, Minister of State for Finance Dr Aisha Ghaus Pasha stated that some understanding was reached with the IMF and some clearance had also been secured at the prime minister level.

PL on POL products target: IMF-govt talks hamstrung by disconnect

While talking to reporters on the second day of policy-level talks with the fund, the minister of state for finance acknowledged that the IMF wanted more clearance on some issues.

Pasha claimed that the discussions with the IMF were moving in a positive direction and the government’s entire focus during the negotiations has been on protecting the common man.

In reply to a question, she said that a decision with respect to the rate of increase in the electricity price would be taken later on.

IMF talks: ‘Some understanding’ reached: MoS Pasha

The minister said that she was confident that the government would ensure that the burden of the programme effects the common man the least and those who can afford to pay should pay more percentage of an increase in electricity cost and taxes if any were imposed.

An IMF delegation is in Pakistan to conclude the ninth review of the economy and unlock the next tranche.

On condition of anonymity, sources earlier told Business Recorder that power sector and primary balance remained major issues during technical-level talks.

They added that now these would be taken up during the policy-level discussions to determine the revenue gap as well as with respect to tariff increase.

According to the officials, the IMF was displeased over providing subsidy to export-oriented sectors and wanted the government to withdraw it and sought an increase in general sales tax, ie, from 17-18% in view of revenue shortfall.

They added as per the IMF projection, primary deficit for the ongoing fiscal year would be around 0.9% of the GDP, whereas, the government projection was around 0.5-0.6% of the GDP.