KARACHI: Policy-level talks between Pakistan and IMF is still under way but has so far remained inconclusive.
Sources said that development budget is likely to be cut by more than 300 billion rupees, adding that preparations for cut by more than 40% in development budget have been finalised.
More than Rs400 billion instead of Rs727 billion would be spent on uplift projects and funding for unnecessary and paper-based projects on the condition of the IMF would be stopped.
Moreover, PCs of all projects will be published. A monitoring system will be created for development projects, sources in Planning Commission said.
Cuts in the development budget are being made to control the budget deficit.
The decision to revise the target of foreign exchange reserves for the current financial year has been taken, sources said.
[embedpost slug=”pakistan-railways-two-chinese-tech-companies-to-launch-app/”]
State Bank Governor Jameel Ahmed and the IMF delegation will meet today. Governor State Bank team along with IMF delegation will discuss external financing.
The IMF will be requested to arrange external financing. There was an agreement with the IMF to stabilize foreign exchange reserves of 16 billion dollars until June.
The goal of stabilizing 16 billion dollars of foreign exchange reserves by June 2023 cannot be metExternal financing arrangements will also be discussed with the IMF till June 30, 2023.
