The International Monetary Fund (IMF) has demanded ‘do more’ from Pakistan during the first round of talks for the second review of SBA programme, ARY News reported, citing sources.
Islamabad: In a first meeting with the Finance Ministry officials, the IMF showed concerns over the supply of gas to fertilizer producers at subsidised rates, the sources said.
The international lender demanded to end the provision of gas to the fertilizer producers at a subsidised rate. The delegation also expressed their concerns over increasing prices of commodities in Pakistan despite stability at the international level.
During the meeting, the IMF delegation was also briefed on circular debts in the energy sector, tariff outlook, cost side reforms, tax administration, tax policy, BISP outlook, and its development by the concerned officials, the sources said.
The IMF delegation also asked Pakistan authorities to tax real estate, manufacturing and retailer sectors.
Yesterday, Finance Minister Muhammad Aurangzeb said that Pakistan wants to seal the biggest and longest-running program from the International Monitory Fund (IMF), in the country’s history.
Aurangzeb said that the improvement of Pakistan’s economy is the goal of our government more than the IMF. PM Shehbaz Sharif has a clear vision for the upliftment of the ill economy, the minister said and added the premier has given strict instructions in this regard.
Read More: IMF Review Mission Arrives in Pakistan, Talks to Continue Until March 18
The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution funded by 190 member countries, with headquarters in Washington, D.C. It is regarded as the global lender of last resort to national governments, and a leading supporter of exchange-rate stability. Its stated mission is “working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.” Established on December 27, 1945 at the Bretton Woods Conference, primarily according to the ideas of Harry Dexter White and John Maynard Keynes, it started with 29 member countries and the goal of reconstructing the international monetary system after World War II. It now plays a central role in the management of balance of payments difficulties and international financial crises. Through a quota system, countries contribute funds to a pool from which countries can borrow if they experience balance of payments problems. As of 2016, the fund had SDR 477 billion (about US$667 billion).
The IMF works to stabilize and foster the economies of its member countries by its use of the fund, as well as other activities such as gathering and analyzing economic statistics and surveillance of its members’ economies. IMF funds come from two major sources: quotas and loans. Quotas, which are pooled funds from member nations, generate most IMF funds. The size of members’ quotas increase according to their economic and financial importance in the world. The quotas are increased periodically as a means of boosting the IMF’s resources in the form of special drawing rights.
The current managing director (MD) and chairwoman of the IMF is Bulgarian economist Kristalina Georgieva, who has held the post since October 1, 2019. Indian-American economist Gita Gopinath, previously the chief economist, was appointed as first deputy managing director, effective January 21, 2022. Pierre-Olivier Gourinchas was appointed chief economist on January 24, 2022.
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