Finance Minister Ishaq Dar Wednesday briefed the International Monetary Fund (IMF) mission on macroeconomic framework, and medium-term targets as well as budget priorities, it is learnt. A senior official claimed that the IMF mission stated the budget for the next fiscal year presented by finance minister appears to be realistic and in agreement with the Fund view to provide targeted subsidies on electricity, promotion of private sector and expansion of social safety net.
He also clarified that IMF delegation led by Jeffery Frank would remain in Pakistan for 10 days and not four days to hold discussion with the economic team on Post Programme Monitoring (PPM). He said the federal government may include provincial government as stakeholder during policy level talks with IMF because of their critical role in fiscal management especially after last National Finance Commission (NFC) Award and 18th Amendment in case of taking new loan. He said the decision whether or not to request the IMF for a new programme would be taken after technical level discussions on macroeconomic framework. "It would become clear in the next four days after technical level talks as to what kind of prior actions would be required to make the request for a new loan," he added.
The official stated that the IMF mission would also visit Lahore and Karachi and may meet senior officials of provincial governments of the two provinces, private sector. In reply to a question, he said that the various sessions would discuss power sector reforms and fiscal framework during technical level discussion. The IMF would be keen to know about the government plan to reforms in the power sector, strengthening Central Power Purchase Agency's and improving independence and quality of National Electric Power Regulatory Authority (Nepra).
The Minister for Planning and Development Ahsan Iqbal briefed the IMF mission on Rs 1.155 trillion national development programme including Rs 540 billion Public Sector Development Programme (PSDP). The official said the IMF mission has not raised any question about increase in the size of PSDP.
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