Pakistan is set to initiate technical negotiations with the International Monetary Fund (IMF) on November 2, a move aimed at securing a $710 million tranche. The discussions will focus on various economic aspects including tax reforms, circulation debt, advancements in the power sector, external financing targets, and reduction of public institution losses. The key participants in these negotiations will be the finance ministry, Federal Board of Revenue (FBR), and other relevant Pakistani authorities.
Prior to this, Pakistan's economic team prepared for a 15-day mission with the IMF for an economic review involving both technical and policy-level talks. The Finance Ministry compiled performance reports from all ministries, including key departments such as FBR, Ministry of Planning, Ministry of Energy, Ministry of Petroleum, and the Benazir Income Support Program. Additionally, implementation reports from PIPA and 11 other entities were put together. These comprehensive assessments aim to evaluate the success of various initiatives.
A positive outcome from this review could unlock a substantial $710 million installment from the IMF. Despite this potential financial boost, Pakistani authorities are considering discontinuing funding for new development initiatives due to concerns over fund allocation within Pakistan's development budget. This is largely attributed to the austerity measures proposed by the IMF.
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