ISLAMABAD: Over a week after assuming charge of caretaker Finance Minister, Dr Shamshad Akhtar, has reportedly held a first virtual meeting (an introductory one) with the International Momentary Fund (IMF) staff team. The meeting is said to have been held on Thursday even though no one from the finance ministry was ready to officially confirm it.

However, during the meeting, discussions were held on the power sector and gas sector circular debt and finance minister assured the Fund that the government is committed has with respect to implementation of the agreed reforms under the Stand-by-Arrangement (SBA) and to contain the circular debt in power and gas sectors, according to media reports.

Caretaker Finance Minister has also been holding internal meeting after assuming the charge in the Finance Division and visited Federal Board of Revenue (FBR) to review progress so far on implementation of $3 billion SBA of the IMF.

Dr Shamshad vows all obligations, including those with IMF, will be fulfilled

According to the staff report prepared by the IMF staff mission on the SBA for the Fund Executive Board’s, the first of review of the SBA is scheduled for end September 2023 and the visit of the caretaker finance minister to FBR and the meeting on the power sector is being seen in this context.

On condition of anonymity, official sources added that power sector is a major challenge for the caretaker government, as for all previous governments, due to power theft and non-recovery of billed amount.

Shamshad Akhtar during her visit to the FBR is said to have underlined the importance to increase the tax-to-GDP ratio. She reportedly expressed the desire to bring new tax payers into the tax net instead of putting further burden or squeezing existing taxpayers, an exhortation made by all previous finance ministers but to no avail.

Copyright Business Recorder, 2023