IMF talks: Important progress on sugar policy and fuel subsidy

Pakistan and the International Monetary Fund (IMF) talks on various economic policies and reforms are progressing. Several important sectors are being reviewed in the meetings with ministries and relevant institutions.

According to sources in the Ministry of Finance, the IMF mission will meet with officials again today. Efforts are being made to finalize issues related to economic and financial policies in the talks.

According to sources, the sugar sector is also among the important points of discussion. The IMF has suggested deregulating this sector. However, the Sindh government has expressed reservations about the federal sugar policy.

Sindh maintains that some decisions related to sugar are linked to provincial jurisdiction. Due to this difference, consensus has not been reached on the policy yet.

The Fund has also put forward its proposals regarding the auto sector. According to sources, there has been a demand to end the tax incentives available to electric vehicles.

The issue of fuel subsidy also came under discussion in the talks. The IMF has agreed to the prime minister’s proposal to provide relief to consumers but has stressed limiting the scope of the subsidy.

Sources say that it has been proposed to limit fuel relief to small vehicles. The aim is to keep government expenditure within a certain limit.

The meeting with the officials of the Ministry of Petroleum will discuss the tariff structure of gas and circular debt in the energy sector. The Pakistani delegation will be led by the minister of petroleum.

Meanwhile, the meeting with the officials of the Ministry of Privatization will review the privatization of discos and line losses in the power sector. The talks between the IMF and the FBR have already been completed.

The main objective of the ongoing talks is to build consensus on policy measures in various sectors and take forward the progress for the next phase of economic reforms.