ISLAMABAD - Policy level talks between Pakistan and the International Monetary Fund (IMF) under a $3 billion loan programme would start next week.
Technical talks between two sides started from 2nd November in Islamabad that involved an exchange of the latest data, first quarter (July to September)’s data and queries and clarifications on all macroeconomic areas. Now, both sides will hold policy level talks, which are expected to be completed next week. Caretaker Finance Minister Dr Shamshad Akhtar would head the Pakistan’s delegation in talks. In technical talks, Pakistan had briefed the visiting delegation on the performance of the economic indicators during the first quarter of the current fiscal year. Pakistan had assured the Fund to achieve all the targets. It was agreed to bring the retail sector into the tax net and improve the targeting of real estate-based revenue collection. It was informed that FBR had already surpassed the tax collection target in the first quarter of the ongoing financial year. On external financing requirements, Pakistan has informed that any shortfall would be met through Foreign Direct Investment (FDI). The government is expecting to receive FDI under the forum the Special Investment Facilitation Council (SIFC) in the field of agriculture, aviation, minis and minerals and energy sectors. Officials informed that the IMF had assured that the government would control the budget deficit within the target. Pakistan has to achieve primary surplus — the difference between total revenues and expenditures except interest payments — at 0.4 per cent of GDP (about Rs400 billion) based on Rs600 billion cash surpluses to be returned to the federal government by the provinces. Meanwhile, the government has also achieved the target of primary budget surplus and petroleum levy in July to September period.