Thaindian News

Islamabad, Mar 9(ANI): The inconclusive talks between Pakistan and the International Monetary Fund have prompted the IMF delegation to extend its stay for another two to three days to finalise the pending policy issues with Islamabad.

“Federal Minister for Finance and Economic Affairs Abdul Hafeez Sheikh and IMF’s Pakistan chief Adnan Mazari agreed to continue the ongoing talks over the next two to three days, as still there is a lot of work to be done regarding economic policies,” The Nation quoted a senior Finance Ministry official, as saying.

Earlier, the IMF held a five-day technical meeting with the Pakistan government followed by a two-day policy dialogue, which was to conclude on Tuesday, but the organisation decided to extend its tour by another two to three days. Sources said that Pakistan and the IMF would work on the economic activities in the next three days, as both sides have already agreed on several points.

Both sides have agreed on the monthly budgetary target for the ongoing month of March, and they would negotiate for the fifth economic review in the extended time period, they added.

According to the sources, Pakistan’s demand of setting the fiscal deficit target at around 5.3 per cent of the Gross Domestic product (GDP) might be accepted, with an assurance to the IMF that the government would take steps to reduce the deficit.

The government told the IMF that the budget deficit could be reduced to some extent with the help of additional revenue generation measures, which include the imposition of a 15 per cent flood surcharge, 1.5 per cent additional special excise duty, broadening of the tax base and recovery of the arrears to generate additional revenue of 26 billion rupees.

Sources said Pakistan is also negotiating for the Letter of Comfort (LoC) with the IMF, as the document is important for getting budgetary support from international donors, including the World Bank and the Asian Development Bank.

According to reports, the IMF has already refused further concession for the revival of suspended 11.3-billion-dollar standby arrangement, and linked it with additional revenue generation and a cut in government expenditure.

The IMF is likely to hold a review meeting in May to check Pakistan’s progress regarding the monthly target for March, and that review will decide the fate of the suspended programme. (ANI)