ISLAMABAD – The International Monetary Fund (IMF) has indicated forfurther discussions on the industrial promotion package (also called asamnesty scheme) over the next few days, as the talks between Pakistan andIMF remained inconclusive so far.
Talks between Pakistan and IMF for the seventh review under the extendedfund facility had started virtually on March 4. Talks were expected tocontinue for around 10 days. However, the discussions have not concludedyet.
The IMF had expressed serious concerns over the Prime Minister’s reliefpackage by reducing oil and electricity prices and tax amnesty scheme forthe industrialists. Earlier, the IMF had asked Pakistan not to announce anytax amnesty scheme. The IMF is of the view that Prime Minister’s reliefpackage would increase the budget deficit. However, the government has sofar failed to convince IMF on the aforementioned two packages.
The Ministry of Finance on Thursday clarified that negotiations under the7th review are continuing as planned and the two sides remain engaged on aregular basis at a technical level through virtual meetings and datasharing.
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The focus of negotiations under the 7th review has been on the agreedtargets between the two sides, as well as the recently announced relief andindustrial promotion packages. There is a consensus that all theend-December agreed targets have been achieved, while progress on otheractions mentioned in the Memorandum on Economic and Financial Policies(MEFP) for the 6th review has also been found to be satisfactory.
