IMF-Pakistan talks over SBA review stretch as key sectors remain unaddressed

ISLAMABAD: The discussions between the International Monetary Fund (IMF) and Pakistani authorities regarding the second review of the stand-by arrangement (SBA) have been prolonged for an additional day due to incomplete coverage of all sectors over the past three days.

Initially scheduled from March 14 to 18th, the talks have been extended, according to sources familiar with the matter.

Reportedly, the review process encountered no obstacles; however, both sides were unable to address all agenda items, necessitating the extension.

Key discussions included updates on anti-money laundering/CFT by the Federal Board of Revenue, Finance Ministry, and Financial Monitoring Unit (FMU), along with briefings from the FBR, SBP, and FMU on the latest developments.

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Furthermore, discussions revolved around the draft Memorandum of Economic and Financial Policies (MEFP), with ongoing talks set to possibly conclude on Tuesday.

The need for additional time was agreed upon to delve into matters concerning external financing, energy sector circular debt (electricity and gas prices), and tax policy, including the potential reduction of tax slabs for both salaried and non-salaried individuals.

Negotiations for the new programme with the IMF are anticipated to take place in April next month.