ISLAMABAD - A delegation of International Monetary Fund (IMF) yesterday arrived in Pakistan to review the country’s economic performance.
Both the sides would formally start the negotiations today. The IMF team is expected to meet Finance Minister Muhammad Aurangzeb today to discuss fiscal policies and potential adjustments aimed at addressing the revenue shortfall. The government is working on its homework for negotiations with the IMF, including the features of a potential mini-budget.
During its stay, the IMF delegation will be briefed on tax revenue performance, trader-friendly scheme, and reforms in the energy sector. The discussions will include discussions on the features of a possible mini-budget to meet the annual tax target. The IMF delegation will be apprised of the progress in implementation of an agricultural income tax at the provincial level, although sources indicate that provincial governments have failed to meet the October deadline for legislation.
The IMF mission will also be briefed on the arrangements for bridging the $2.5 billion financing gap. However, this visit will not cover the first review of the Extended Fund Facility.