The International Monetary Fund (IMF) delegation has assured Finance Minister Muhammad Aurangzeb of their commitment to economic support for Pakistan.

According to sources, Friday (today) is the final day of negotiations between the IMF delegation and Pakistan’s economic team.

During their visit to the Ministry of Finance, the IMF representatives praised the economic team for their efforts and actions thus far.

Aurangzeb reassured the IMF that Pakistan is committed to fully implementing all agreed-upon targets and emphasized that “there will be no violations of these targets while remaining within the framework of the loan program.”

On March 11, the government told IMF that seven state-owned entities, including Pakistan International Airlines, would be privatised, to complete the $7 billion loan programme.

Also, on March 7, the proposal to eliminate the goods and services tax (GST) on electricity bills for consumers has been rejected in the economic review negotiations between Pakistan and IMF, according to a report.

According to sources, the IMF stressed the need for immediate cost-cutting and has asked Pakistan to present a comprehensive plan to bridge the revenue shortfall in the next quarter.

The mission arrived in Islamabad on Monday for its biannual review of the $7 billion bailout deal.

IMF demands

• The IMF requests that tax exemptions on solar panels and electric vehicles be eliminated, as they are mainly used by the wealthy.

• They are also calling for the removal of tax breaks on spare parts for electric vehicles.

• The organization emphasizes the need for strict adherence to economic discipline in all financial matters.

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