The International Monetary Fund has made massive demands from the government including hikes in the price of electricity and gas as talks over a stand-by agreement approach conclusion. However, the government is still hopeful of meeting the requirements and getting a deal done on Tuesday.

According to sources, the IMF wants assurances about its proposed measures from the upper levels of geovernment including the prime minister himself.

Conditions laid down by the Fund include increase in prices of electricity and gas as well as a special scheme to bring small retailers into the tax net.

However, the IMF team said it believed that FBR will be able to meet the Rs9,415 billion revenue target by June 30.

Sources in the the Finance Ministry said that provinces have agreed to raise an additional Rs600 billion in revenue.

Aurangzeb chairs meeting to reveiw IMF progress

The finance ministry is hopeful that a deal with the IMF could be completed as soon as Tuesday. Finance Minister Muhammad Auragnzeb has expressed a willingness to implement the IMF’s demands.

However, the ministry has also discussed contingency plans in case the second review is not completed.

The government is also planning to informally broach the topic of an extended fund facility with the IMF.

A formal request is likely to be made at the annual meeting of the IMF and World Bank.