- Fund is said to have raised some more questions and sought reply from the Pakistani team about the financing of the package
ISLAMABAD: Ongoing talks between Pakistani authorities and International Monetary Fund (IMF) on seventh review of Extended Fund Facility would continue during next week as well as later, as it has asked some more questions with respect to Prime Minister’s relief Package, said an official on condition of anonymity.
Sources said that Pakistani authorities, after providing explanation to the IMF on prime minister’s relief package and amnesty scheme on Wednesday, were expecting the talks to conclude on Friday but as expected, Fund is said to have raised some more questions and sought reply from the Pakistani team about the financing of the package and consequently, the talks are expected to continue in the next week till Monday or Tuesday.
During background discussions, Finance Ministry’s officials acknowledged the IMF concern over untargeted subsidy under Prime Minister Package, especially on petroleum products, and amnesty scheme for industrial sector and appeared dissatisfied on the provided explanation.
Sources added that the IMF did not agree that the amnesty scheme for industrial sector was in fact a scheme to attract investment and stated that whatever name it might be given, it’s an amnesty scheme.
They further stated on petroleum products, the IMF was conveyed that there was no mechanism to provide targeted subsidy on petroleum products and neither it was possible to develop in a short time. As soon as a mechanism would be devised, the subsidy would be made targeted on petroleum products.
Copyright Business Recorder, 2022