Advisor to Prime Minister on Finance, Dr Shahid Amjad Chaudhry will brief the Fede-ral Cabinet meeting expec-ted to be held on Thursday, on talks with International Monetary Fund (IMF) on Extended Fund Facility (EFF), it is learnt. Sources said the Cabinet meeting may be convened on Thursday to review the arrangements to conduct May 11 general elections and law and order situation in the country.
The Advisor, who had recently headed a delegation to the annual meeting of World Bank/IMF would brief the Cabinet on the country's economic situation and IMF's possible response to a request for a new programme by the elected government. Sources revealed that Dr Shahid is likely to inform the economic teams of different political parties about the current economic situation and the content of discussions with the IMF if so directed by the caretaker Prime Minister and the Cabinet.
In reply to a question, sources requesting anonymity said the sole purpose of briefing to the political parties would be to make them aware of the economic challenges and prior actions required to qualify for the Fund's EFF facility. They said the new government would require IMF programme either in June-July or September-October 2013. The Fund conditions are expected to be very stringent specifically with respect to the power sector reforms that include reducing subsidy to the power sector, passing on full electricity cost to the consumers and minimising line losses.
The government may be required to strengthen Central Power Purchase Agency and improve independence and quality of National Electric Power Regulatory Authority (Nepra). In addition, ax reforms that would stipulate enhancing the tax base are expected to be part of EFF conditions.
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