Federal Minister for Finance and Economic Affairs Senator Muhammad Ishaq Dar will brief the International Monetary Fund (IMF) on the progress of the economic reforms and discuss important budgetary targets for the next financial year, it was reliably learnt.
The minister is likely to brief the IMF authorities on the economic reforms centering on taxation, privatisation and energy sector. The government is under pressure on these three key areas as the reforms have nearly halted due to the political issues and upcoming general elections.
IMF had asked for strengthening tax compliance and clawing tax evaders. The FBR has nearly failed to show any significant progress in these areas during the current financial year. The privatisation of loss making entities, for which Pakistan had agreed to bring under the hammer loss making electricity generation and distribution companies, airline, steel mill.
However, strong resistance from opposition and labour unions has halted the progress. The Privatisation Commission is without key functionaries for the last two months and work has come to halt. Same is the case with the energy sector, where IPPs have invoked sovereign guarantees seeking their outstanding dues.
The circular debt has again risen to over Rs 414 billion and the country is faced with long unscheduled power outages. According to a Finance Ministry statement, Senator Ishaq Dar on Friday joined the Pakistan delegation for the ongoing Article-IV consultations with the IMF team in Dubai.
Dar will lead the Pakistan side while IMF team is being led by IMF Mission chief to Pakistan Harald Finger. The minister was given a detailed briefing, by senior members of the Pakistan delegation, on proceedings of the first round of talks spanning over three days since March 28.
The consultations are likely to continue till April 5. A detailed review of reforms carried out by Pakistan in different areas of the economy, particularly the energy sector, would be undertaken. Last September, Pakistan completed the final review with IMF under EFF programme that spanned 36 months, its engagement with IMF through policy dialogue in the context of regular consultations and post-programme monitoring is continuing.
