Talks between IMF, govt for new bailout package remain inconclusive

Talks between IMF, govt for new bailout package remain inconclusive

Talks between IMF, govt for new bailout package remain inconclusive

Talks between IMF, govt for new bailout package remain inconclusive

Advertisement

ISLAMABAD: Negotiations between the International Monetary Fund (IMF) mission and the Pakistani economic team for getting a bailout package have remained inconclusive.

The sources said that there is no chance to have a staff-level agreement after policy level talks, adding that the IMF mission would go back after completing its three-day visit.

The sources further said that talks with IMF mission for new loan would continue. The mission would release a report on Pakistan’s economic reforms after its return.

The sources said that the both sides have agreed to continue virtual negotiations.

They maintained that the final decision would be made after steps taken by the government in budget.

Advertisement

Earlier, the Pakistani economic team led by Finance Minister Muhammad Aurangzeb presented a comprehensive plan to the IMF team, headed by Nathan Porter to curtail expenses by approximately Rs300 billion in the next fiscal year.

The proposed measures also include a ban on fresh recruitment to vacant posts in grades 1 to 16, no allocation of development funds for parliamentarians, and the introduction of a partnership-based pension scheme. Additionally, the government has outlined plans to cease funding ongoing provincial development projects and refrain from establishing new universities, with provinces expected to finance their educational institutions independently.

Furthermore, pension reforms at the request of the IMF are on the agenda, with a proposed partnership pension scheme slated for implementation for all new recruits, excluding defense and police personnel.

Officials from the Ministry of Finance highlighted the significant rise in the pension bill, estimating it to reach Rs960 billion in the upcoming fiscal year, compared to Rs801 billion in the current fiscal year.

The negotiations, expected to continue until May 23, will determine the volume and terms and conditions of the new loan program, budget targets, tax and non-tax revenue, and macroeconomic targets for the fiscal year, in consultation with the IMF.

Moreover, there is a possibility of a total ban on the development funds of members of parliament next year, for which Rs90 billion was allocated this year.

Advertisement

However, the IMF has yet to provide confirmation regarding a potential staff-level agreement at the conclusion of negotiations. The end of the negotiations is likely to pave the way to a staff-level agreement between the parties.

Advertisement
Advertisement
Read More News On

Catch all the Business News, Pakistan News, Breaking News Event and Latest News Updates on The BOL News


Download The BOL News App to get the Daily News Update & Follow us on Google News.


End of Article

Next Story