IMF, Pakistan Continue Policy-Level Economic Review Talks

The policy-level talks between Pakistan and the International Monetary Fund (IMF) are continuing as part of the ongoing economic review.

According to sources, the IMF review mission and the Petroleum Division held discussions on the petroleum subsidy scheme. The IMF mission has conditionally agreed to the continuation of the scheme but has asked the government not to increase the number of beneficiaries.

The IMF mission also repeated its demand to deregulate the sugar sector.

Sources said the Sindh government has described the federal government’s sugar policy as interference in provincial autonomy. Due to differences, the sugar policy could not be finalised, and the federal government briefed the IMF mission about the issue.

The IMF mission has asked the federal government to complete consultations with the provinces on the matter.

The mission has also called for ending tax exemptions given to electric vehicles under the auto policy.

According to Finance Ministry sources, all issues under the ongoing policy-level talks are expected to be completed this week. Discussions between Pakistan’s economic team and the IMF review mission will continue today on key targets.