On Monday, the International Monetary Fund (IMF) briefed European and American ambassadors on the progress of Pakistan’s current bailout package as it extended discussions with the authorities.
The talks, stretching into their third day, were initially slated to conclude on Monday.
The government informed the Fund that it was planning to roll out a new pension scheme in July, but challenges remained with its execution. The new pension scheme would reduce the post-retirement benefits of the government employees.
The sources said that the IMF hosted the ambassadors and representatives from at least nine European and Western nations and apprised them of Islamabad’s successes under the current $3 billion stand-by arrangement (SBA).
According to people privy to these discussions, diplomats from the United States, European Union, France, Italy, Germany, and Australia attended the briefing.
The IMF also told the foreign envoys that Pakistan intended to express another bailout program. However, the loan’s size and duration must be clarified.
The IMF informed the foreign envoys that Pakistan had made significant progress in achieving the program objectives, and the results are encouraging.
The lender highlighted the challenging areas, mainly the low revenue collection, particularly by the provinces, which now necessitate revisiting the National Finance Commission (NFC) award. A foreign diplomat inquired about the IMF’s position on the NFC award.
