On Tuesday, Pakistan and the IMF began staff-level negotiations on the ninth review of the $7 billion Extended Fund Facility (EFF) in Islamabad.
Ishaq Dar welcomed IMF mission chief Nathen Porter to the Finance Ministry.
The IMF’s review mission arrived in Islamabad on Monday, and both sides are undertaking their hardest-ever talks to complete the ninth review under the $7 billion EFF. The administration will present its idea for higher revenue to the visiting review mission.
In general, the discussion will be around Pakistan’s mandate to raise over Rs200 billion in taxes, rationalize expenditure, and raise power and gas pricing to eliminate the circular debt.
The Washington-based lender recommends the strongest economic measures when foreign exchange reserves are falling and reached $3.6 billion.
Before the discussions, the government allowed rupee adjustment versus the dollar and raised petroleum prices to record highs.
The IMF wants the government to fund the Rs600 billion fiscal gap by raising taxes or lowering spending to keep the budget deficit and primary deficit within acceptable levels.
Both sides will meet to agree on the budgetary shortfall and the mini-taxation budget’s forecasts.
Pakistan and the IMF will hold technical-level negotiations today through Friday before starting policy-level talks to finalize the Memorandum of Financial and Economic Policies (MEFP).
As Islamabad seemed to agree to a staggered electricity pricing increase of Rs7.50/unit, the IMF sought an Rs12.50/unit increase.
During IMF talks, the government may cut untargeted power sector subsidies to influential organizations. In addition, consumer gas tariffs will rise by 74%.
 in Islamabad.){kind=link}