IMF to discuss subsidies on petroleum products, electricity and gas on arrival in Pakistan: Reports

Islamabad [Pakistan], May 8 (ANI): International Monetary Fund’s special delegation is all set to arrive in Pakistan to discuss the budget recommendations alongside subsidies on petroleum, electricity and gas with the federal government. This comes after Finance Minister, Miftah Ismail held a meeting with the executive directors of the International Monetary Fund (IMF) in Washington for the revival of the Extended Fund Facility (EFF) programme last month and agreed upon IMF’s recommendations to reduce fuel subsidies phase-wise.

The global financial institution’s delegation will stay in Pakistan for 10 days to hold talks with the Pakistani officials, Ary News reported. Apart from examining the federal government’s plan regarding subsidies on petroleum products, electricity and gas, the IMF delegation will also review the taxes and duties collections in the next round of talks.

They will hold talks about ending additional subsidies worth Rs 500 billion, sources added. In fact, the finance minister previously emphasised that the government would make all-out efforts to restore the Extended Fund Facility (EFF) programme with International Monetary Fund (IMF)

“We will restore the programme. If the government had to tighten its belt, it will do so,” he said adding that no extra burden would be put on people. Pakistan is already grappling with a massive rise in foreign debt and its economy is slumping due to low investment, low exports, and low productivity growth cycle which highlights the structural weaknesses of country’s economy. (ANI)