The ongoing economic review talks between the International Monetary Fund (IMF) mission and Pakistan have entered a crucial phase today.
According to sources, the Pakistani economic team is hopeful that the IMF mission will recommend the release of the next tranche, which is expected to ease fiscal pressure and restore confidence.
An important meeting will be held today with officials from the Federal Ministry of Finance and the Ministry of Energy, in which detailed discussions will be held on power sector reforms, line losses, recovery of electricity bills, and privatization of discos.
The sources said that the IMF mission has sought a timeframe for privatization of distribution companies, while Federal Finance Minister Muhammad Aurangzeb will lead the policy-level talks.
According to the FBR, today’s talks will also discuss the transfer of funds to the provinces under the NFC award.
The IMF has stressed that the provinces should fund their development and rehabilitation projects from their own resources so that the pressure on the federal budget does not increase.
According to sources, the mission will also be given a detailed briefing on the Reko Diq Copper and Gold Mine project.
The estimated cost of the project has increased from $4.3 billion to $7.72 billion, while the target of producing two hundred thousand metric tons of copper annually in the first phase has been set.
Moreover, the IMF will also be briefed on the new National Tariff Policy (2025-2030), under which a gradual reduction in import duties and a target of increasing exports have been set.
According to sources, the mission will also be informed about the losses caused by the floods, the slowdown in economic growth, and possible changes in budget targets.
Experts say that if the negotiations are successful, Pakistan will also see an improvement in its foreign investment prospects with the approval of the next tranche.
