ISLAMABAD – Finance Minister Muhammad Aurangzeb briefed the International Monetary Fund (IMF) delegation about Pakistan’s economic situation and reforms agenda amid ongoing part of the economic review process.
The IMF discussions include a review of the economic performance for the first half of the current fiscal year.
The sources said that the Green Initiative report, presented by the Ministry of Finance and planning, was also considered during the talks. The IMF delegation was provided with a report on climate change projects under the Green Initiative.
They said that the Ministry of Finance prepared the report at the IMF’s request.
Additionally, the negotiations are reviewing Public Sector Development Program (PSDP) expenditures and possible reductions.
Meanwhile, the IMF delegation held a meeting with Finance Minister Muhammad Aurangzeb, during which he briefed them on the economic situation and the reform agenda.
The meeting with the finance minister was also attended by the Secretary of Finance and the Chairman of the Federal Board of Revenue (FBR). The finance minister informed the IMF about the country’s economic status and provided details on the reform agenda.
The first phase of discussions consists of technical-level talks, with the IMF delegation led by review mission chief Nathan Porter.
The Ministry of Finance presented economic indicators for July to February to the IMF delegation. According to the sources, the details regarding the fiscal deficit, primary balance, provincial surpluses, and revenue collection were shared with the delegation.
They said that the revenue collection from July to January for the current fiscal year also came under discussion. On this occasion, the Economic Wing, Budget Wing, External Finance Wing, Regulations Wing, and DG Debt briefed the IMF delegation, revealing that the fiscal deficit recorded from July to December stood at Rs1,537 billion.
FBR Chairman Rashid Mehmood Langrial briefed the IMF delegation on revenue collection, with participation from FBR board members. During the negotiations, the IMF delegation would also present its recommendations for the next fiscal year’s budget.
It may be mentioned here that Pakistan submitted a compliance report on the conditions of the $7 billion loan program. A report on the first half of the current fiscal year has also been presented to the IMF.
The IMF delegation was assured that the government is committed to strictly adhering to the IMF program. Macroeconomic stability has been achieved in the country while the reforms in the tax and energy sectors are ongoing.
The delegation was also briefed on progress in rightsizing and privatization of state-owned enterprises. They were informed that the exchange rate and foreign exchange reserves remain stable. The IMF mission also received a briefing on economic indicators from July to February.
The IMF delegation was informed that fiscal deficit, primary balance, provincial surpluses, and revenue collection have improved. Discussions were also held on revenue collection from July to January for the current fiscal year.
The IMF delegation in Pakistan will also hold meetings with officials from other ministries.
