Pakistan eyes IMF bailout deal after final talks today to stave off economic crisis

ISLAMABAD – The talks between Pakistan and the International Monetary Fund (IMF) have entered final stage and both sides will conclude ongoing talks for the stalled bailout package today.

The country of over 220 million is facing the worst economic crisis and was in talks with the international lender to secure another bailout, by making stringent reforms demanded by its mission.

IMF officials were in the South Asian nation for over a week time to sort out the differences over fiscal policy as the government made desperate attempts to unlock the much-needed funds as forex reserves plunged to critical levels.

Earlier, Pakistan’s Finance Chief Ishaq Dar led the delegation, and Nathan Porter represented the IMF delegation, with both sides mulling ways on reforms, ending circular debt, and proposed tax measures.

On the last day of negotiations, experts claimed that the draft of mutual economic and financial policy is likely to be finalised.

It was reported that the ongoing talks will end in the next 48 hours as the Sharif-led government is set to unveil a new ‘mini-budget’ to impose new taxes worth nearly Rs200 billion to ensure the continuation of the IMF program.

Lately, State Minister for Finance and Revenue Aisha Ghaus Pasha said Pakistan would soon reach an understanding with the IMF to secure the next tranche.

Pakistan facing tough task to impose hefty taxation as policy-level talks underway with IMF

Pasha also hoped IMF to share the initial draft before the end of talks, saying the government is close to the finalization.

More to follow...