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| Differences on a few issues between Pakistan and IMF continue, and policy talks postponed for one day |
Differences on a few issues between Pakistan and IMF continue, and policy talks postponed for one day
ISLAMABAD: Differences between Pakistan and the IMF over power sector subsidies, the target of the Petroleum Development Levy, and the GST issue have continued, leading to a two-day extension of the technical-level talks.
According to the sources, the technical level talks of the IMF team were scheduled till Friday, but the technical level talks were extended for further consideration of some issues so that a final outcome can be reached in the policy level discussions.
Sources said that the IMF team has demanded the complete removal of subsidy on electricity and increased GST on all products and commodities from 17% to 18%.
Pakistan and the IMF have not been able to agree on some issues, Pakistan has presented various alternative proposals to control the fiscal deficit, and the IMF has also demanded the end of the subsidy given to the export sector on electricity so that The government is trying to convince the IMF team on power prices that the increase in electricity cost can reduce the revolving debt of 952 billion Rupees.
Both the teams have agreed in principle regarding the subsidy and Pakistani authorities have prepared to reduce the base deficit. The additional subsidy amount under the revised circular debt management plan has been reduced to 605 billion rupees.
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