Second review under the IMF’s Stand by Arrangement (SBA)
IMF asks Pakistan to ‘end subsidised gas’ to fertilizer producers
ISLAMABAD (PPI): An IMF mission called on Federal Minister of Finance and Revenue, Mr. Muhammad Aurangzeb in the Ministry of Finance Thursday.
The IMF mission is in Pakistan to conduct the second review of the Stand by Arrangement (SBA).
According to a press release here Thursday, Federal Minister of Finance and Revenue, Mr. Muhammad Aurangzeb welcomed the mission and expressed the government's commitment towards working with IMF on the reform agenda for economic growth and stability of Pakistan.
IMF mission head Mr. Nathan Porter, congratulated the Federal Minister of Finance and Revenue, Mr. Muhammad Aurangzeb on his appointment.
Discussions were held on the overall macro-economic indicators, government’s efforts on fiscal consolidation, structural reforms, energy sector viability, and SOE governance.
Federal Minister of Finance and Revenue, thanked IMF for their continued support and hoped for productive meetings during the second review.
Meanwhile, the International Monetary Fund (IMF) has demanded ‘do more’ from Pakistan during the first round of talks for the second review of SBA programme.
In a first meeting with the Finance Ministry officials, the IMF showed concerns over the supply of gas to fertilizer producers at subsidised rates, the sources said.
The international lender demanded to end the provision of gas to the fertilizer producers at a subsidised rate. The delegation also expressed their concerns over increasing prices of commodities in Pakistan despite stability at the international level.
During the meeting, the IMF delegation was also briefed on circular debts in the energy sector, tariff outlook, cost side reforms, tax administration, tax policy, BISP outlook, and its development by the concerned officials, the sources said.
The IMF delegation also asked Pakistan authorities to tax real estate, manufacturing and retailer sectors.
Yesterday, Finance Minister Muhammad Aurangzeb said that Pakistan wants to seal the biggest and longest-running program from the International Monitory Fund (IMF), in the country’s history.
Aurangzeb said that the improvement of Pakistan’s economy is the goal of our government more than the IMF. PM Shehbaz Sharif has a clear vision for the upliftment of the ill economy, the minister said and added the premier has given strict instructions in this regard.
