ISLAMABAD: Ongoing talks between Pakistan and the International Monetary Fund (IMF) are expected to conclude this week, potentially paving the way for a staff-level agreement and the release of around $1.2 billion, according to sources in the Finance Ministry.
The discussions have focused on Pakistan’s economic performance and progress towards meeting key targets under the IMF programme.
According to the sources, the IMF has expressed satisfaction with the country’s foreign exchange reserves and welcomed the Federal Board of Revenue’s performance in achieving its revenue targets during the July-September quarter.
The achievement of the tax collection target was described as a significant development for the first quarter of the current fiscal year, the sources said.
The two sides also discussed a proposal to introduce a fixed tax scheme for farmers towards the end of the current fiscal year.
The State Bank of Pakistan briefed the IMF delegation on measures taken to maintain foreign exchange reserves and contain inflation.
The central bank told the delegation that its foreign exchange reserves stood at $21.4 billion, while commercial banks held another $5.4bn, according to the sources.
The IMF delegation is expected to share a draft of the Memorandum of Economic and Financial Policies (MEFP) with Pakistan’s economic team.
An agreement on the MEFP would pave the way for a staff-level agreement, which could facilitate the release of a tranche of around $1.2bn, the sources said.
