A new round of talks from October 4 to 15 to issue the next tranche of a 1 billion dollar loan and get a certificate of better economic condition was fruitless. Despite leaving, negotiations failed. However, both parties have stated that they intend to continue talking. Shaukat Tareen met independently with IMF managing director Kristalina Georgieva and US Assistant Secretary of State for South and Central Asian undertaking Donald Lowe in an effort to reach a helpful conclusion to the arrangements. However, it seems that both these meetings did not prove fruitful.
This is the second time Pakistan and the IMF failed to reach the “ basis for completion of the Six reviews”. In June, the same thing happened and failed to reach an agreement, which is the basis of the bailout package.
Teresa Dobbins Sanchez, the outgoing IMF official for Pakistan, told the Express Tribune, “The IMF team is active in advancing our agenda in meetings with the Pakistani delegation, and we are in talks with the Pakistani authorities on policies and reforms.” Looking forward to the continuation, which may serve as the foundation for the completion of the sixth review.
The parties have not yet exchanged definitive macroeconomic positions, which should have been done by 8 October. Stock markets, as well as the value of the rupee and the dollar, may be affected by the IMF talks uncertainty. It has the potential to increase the amount of pressure. According to the sources, Pakistan and the IMF were unable to agree on a target for more taxes or a road map for the power sector’s financial stability.
The meeting started in Islamabad on 4 October. Shaukat Tareen needed the talks to conclude in Washington on 15 October. Pakistan has shared power and gas taxes and assessed collection figures with the IMF and Finance Minister Shaukat Tareen. Shaukat Tareen said in a news conference in Washington IMF authorities are checking on the figures and will keep us educated. It ought to be famous that these figures are as a rule concurred upon some time recently at the beginning of arrangement talks. In any case, the two sides did not trade imperative budget figures since of the noteworthy contrasts between the two sides.
Sources said that the IMF had requested an extra charge of at least 1% of GDP or more than Rs 525 billion but the government is willing to force access of Rs 300 billion, talks on the target of more charge. The FBR will accomplish its assessment collection target of Rs 5.8 trillion this year. Within the following budget year, the tax-to-GDP proportion will be 13.75 %of GDP. In conclusion, the tax-to-GDP proportion was 11.1%. Shaukat Tareen said during his news conference that Finance Secretary Yousuf Khan would remain in Washington till Tuesday to proceed with the talks. He was planning to return to Pakistan on Monday.
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