ISLAMABAD: The talks between International Monetary Funds – IMF and Pakistan entered the final stages on Wednesday as the two sides almost agreed on multiple points. Media reports stated that sources from the finance ministry have termed the dialogues on the policy level regarding power subsidies were successful.
As per the reports, IMF has demanded a temporary surcharge to unburden circular debt. The review will come to an end after the final round of policy-level talks. After the completion of talks, both sides would reach the staff level agreement.
Under the Standby Arrangement of $3 billion, Pakistan received $1.2 billion from the IMF in July as the first tranche. Pakistan would receive $710 million as the second tranche of the loan in December.
The global money lender has expressed reservations over the need for foreign financing and on failure to achieve tax recovery target of the current fiscal year. Additionally, the IMF raised questions on SIFC creation.