An International Monetary Fund delegation has asked Pakistan to strictly follow the loan programme conditions, sources said on Friday, as the country seeks to unlock $710 million of the loan under the $3 billion worth of stand-by arrangement.

They added that Pakistan has assured the international lender of implementation of all conditions. Sources said that the IMF delegation led by mission chief Nathan Porter expressed satisfaction over Pakistan’s economic performance.

On Thursday, caretaker Federal Finance Minister Shamshad Akhtar held a meeting with the IMF review mission led by IMF chief Porter at the Finance Division. Porter had lauded the government’s commitment to meeting the first quarter targets and stressed the need for the continuation of efforts to stay on track for the economic stability of the country.

The two sides held talks on a technical level on the second day of their visit where revenue targets, refund payments, and tax exemptions were reviewed. The Federal Board of Revenue officials submitted a report on ending tax subsidies.

Sources said that the report submitted by FBR stated that the target of income tax refund payments from July to September has been achieved.

Income tax refund payments were to be capped at Rs250 billion by September 2023 and the FBR controlled income tax refund payments to Rs200 billion by the same period.

As per the shared plan, the income tax refund payments were being gradually reduced while the FBR did not give tax exemptions during the first quarter of the loan programme. The revenue said that the implementation of the IMF conditions on revenue targets, refund payments, and tax exemptions continues and the amnesty scheme has not been introduced.

The Express Tribune reported on Thursday that the interim finance minister described this year’s tax collection target of over Rs9.4 trillion as “low” and asked authorities to work on a plan to increase the collection to Rs15 trillion in the next fiscal year.

According to media reports, the IMF delegation had sought clarity on the election date that was announced on Thursday as the talks for the release of the third tranche of loan, which is around $1.2 billion, would be done under the new government.

Talks are scheduled to be held in February and the amount is expected to be released in March.

Tax and energy reforms would be the focus of the talks on the technical level that would be followed by policy-level talks. The technical level talks would continue by November 15.