An International Monetary Fund (IMF) mission has reached the Finance Ministry to commence discussions regarding a new loan program and the upcoming budget for the new financial year. Led by Mission Chief Nathan Porter, the IMF delegation has initiated an introductory session with Pakistan's economic team, headed by Finance Minister Muhammad Aurangzeb. The consultations, expected to last approximately two weeks, aim to cover a new loan programme as well as the budget for the new financial year. Pakistan is expecting a substantial bailout package of over $6 billion from the IMF to bolster its economy and address pressing fiscal concerns. Sources say the Finance Ministry's economic team has diligently prepared for the negotiations, ensuring all the necessary groundwork is in place for fruitful discussions. Key agenda items include deliberations on the Extended Fund Facility loan program, for which a comprehensive working paper has been prepared by the finance ministry. Additionally, the two dozen-member IMF mission will engage in consultations regarding the formulation of the national budget for the upcoming financial year. On Sunday, the IMF's resident representative in Pakistan, Esther Perez Ruiz, confirmed that a mission of the Fund will hold talks with Pakistani officials on a new loan programme next week.

According to Ruiz, the purpose of the negotiations is to lay the foundation for better and stronger governance. The IMF representative said that the parties will also discuss sustainable economic development, which will benefit all Pakistanis.  Also on Sunday, Finance Minister Muhammad Aurangzeb said the government would provide all facilities, but not back down from expanding the tax net. "We are moving towards complete digitalization; it will increase revenues and also bring transparency," he said further. Addressing a pre-budget conference in Lahore, the minister said there was a need for structural reforms, adding that a lot of reforms had to be carried out regarding tax-to-GDP, energy and privatization issues. The International Monetary Fund (IMF) has also raised concerns over persistent political uncertainty in Pakistan despite the February 8 elections, emphasizing potential implications for economic reforms. Despite the formation of a new government, the IMF highlighted challenges in implementing policy reforms amidst a complex political landscape. According to the IMF, the new government has pledged to uphold policies outlined in the standby arrangement. However, the IMF cautioned that complications arising from political instability, inflation, and social tensions could hinder reform implementation.

Credit: Independent News Pakistan