ISLAMABAD (Mudassar Ali Rana) – Virtual negotiations between Pakistan and the International Monetary Fund (IMF) are ongoing as both sides work toward reaching a staff-level agreement, with discussions currently focused on four major points.
According to sources in the Ministry of Finance, provinces have requested more time to implement agricultural income tax, citing the devastating impact of recent floods on the agrarian economy. Due to the damage, provinces are not immediately willing to enforce this tax.
The official wheat procurement policy is now being included in the IMF’s Memorandum of Economic and Financial Policies (MEFP). The IMF has asked Pakistan to outline a mechanism for wheat procurement that may involve open market purchases or private sector engagement, instead of relying solely on government procurement channels.
Negotiations also include the requirement for public officials to declare their assets, and discussions around the Corruption and Governance Diagnostic Assessment Report. The government has requested more time to publish this sensitive report.
Pakistan’s economic team has asked the IMF for relaxation in certain structural benchmarks to allow for faster finalization of the agreement.