The second round of talks between Pakistan and the International Monetary Fund (IMF) for the final tranche under the loan program is set to take place today. Discussions will focus on crucial economic reforms, including the privatization of state-owned enterprises.
During today’s meeting, officials of various institutions, including the Ministry of Finance and FBR, are scheduled to brief the visiting delegation.
The IMF has declared 42.5% of the funds held by the federation under the National Finance Commission Award insufficient and called for a review along with the provinces.
IMF representatives have urged Pakistan to present a comprehensive plan for privatizing Pakistan International Airlines (PIA) and other government-owned enterprises. Sources reveal that the IMF team will be briefed about the terms and conditions of loans between banks and the government for privatization purposes.
The sources reveal that a term sheet agreement for the privatization of PIA, with an interest rate of up to 12%, is possible.
Once the loan term sheet agreement is finalized, banks are expected to issue a No-Objection Certificate (NOC). Additionally, the sources said, the IMF delegation will be briefed on domestic financing, government guarantees, and other associated expenses related to privatization efforts.
Furthermore, the Federal Board of Revenue (FBR) will discuss tax policies, administration, and revenue generation with the IMF.
However, Energy Ministry sources have reported that the IMF has expressed dissatisfaction with the country’s energy sector’s performance, prompting discussions between the two sides on topics such as circular debt and power purchase agreements.
