Pakistan assures IMF of non-interference in currency fluctuations

ISLAMABAD: The Pakistani government assured the International Monetary Fund (IMF) of non-interference in currency fluctuations of the rupee during a discussion with the international organisation on Monday.

According to sources, the government and IMF agreed to extend the on-going discussions by one day during review talks. Both parties reportedly agreed to continue talks on Tuesday.

While no deadlock was reported, certain issues necessitated ‘further discussion”.

Read more: Pakistan assures IMF to expedite work on privatisation programme

Key topics for continued discussion will include external debt acquisition, revolving credit in the energy sector, and specific points of tax policy.

An agreement was reached between the IMF and the Federal Board of Revenue (FBR) to readjust tax revenue targets on a monthly basis. During the talks, the Pakistani government also reportedly satisfied the IMF regarding the disclosure of government officials’ assets.

The IMF pointed out the importance of aligning Pakistan’s upcoming fiscal year’s budget with their recommendations and demands.

The discussions on Tuesday are slated to include discussions on a new loan programme and the letter of intent with the IMF. Following completion of consultations on the letter of intent, both parties were expected to proceed towards reaching an agreement.

Read more: Dollar further depreciates against Pakistani rupee

Earlier, the Pakistani government assured the IMF it would speed up work on the privatisation of electricity distribution companies within the country. According to sources within the Ministry of Finance, a strategy was formulated to privatize electricity distribution companies, with plans for their transfer to the private sector.

As per sources, progress was also reported on the privatisation of Pakistan International Airlines (PIA). Presently, the active list of privatisation consists of 25 entities that include the national airline carrier and four organisations from the financial and real estate sectors.