Pakistan and IMF begin talks on bailout package

Pakistan and IMF began formal talks on Monday over a three-year bailout package for economic reforms. The two sides are discussing the possibility of a $7-$8 billion loan deal, local media reported.

According to adviser and spokesman for the finance ministry, Khaqan Najeeb, the IMF delegation would meet officials of the ministry, the Federal Board of Revenue and the State (Central) Bank during its visit to Pakistan.

The review mission is expected to analyse economic data and engage in policy level discussions with de facto finance minister Abdul Hafeez Shaikh, during which terms and conditions of the programme will be determined. If successful, the mission will sign a letter of intent with Pakistan.

The IMF team will be briefed over the progress of economic targets and presented with the recommendations for the federal budget for the fiscal year 2019-20.

The IMF has been pressing Pakistan to increase its tax-to-GDP ratio to 13.2%. Sources say Pakistan has assured the IMF of raising its tax collection to 12.7% of GDP.

Prime Minister Imran Khan had met IMF director Christine Lagarde on Friday on the sidelines of the Belt and Road Forum in Beijing.

First Published: Apr 30, 2019 01:30 IST