ISLAMABAD: Pakistan and International Monetary Fund (IMF) technical talks could not conclude and another round of talks will be held today. Sides failed to fill gap in talks over their versions with regard to economic data, sources said.

Policy talks between sides have been delayed as conclusion of technical talks lingering on. "Policy talks now expected to begin on February 7", sources said. Pakistan and IMF officials have differences over figures of budget deficit and tax data. Government officials have failed to convince IMF over their point of view, sources said.

IMF officials said that tax revenue of Pakistan will likely remain 840 billion rupees down, while Pakistani delegation keeps figure down by 450 billion rupees. Pakistan's economic team have to convince with IMF delegation with regard to economic data in meeting today, sources added.

Sources yesterday said that Pakistan has left no option other than hiking prices of petrol, diesel, electricity and gas. Final decision for toughest decisions will be taken by Prime Minister.

Government is also expected to take other political parties into confidence regarding tough economic decisions in upcoming all-parties conference. Sources said that government presented plan to reduce Rs 611 billion in budgetary expenditures. Moreover, government also agreed on limiting subsidies to up to Rs 340 billion. Details of mini budget also came into discussion. IMF demanded to increase Sales Tax rate from 17 percent to 18 percent. They also deliberated on ending discounted Sales Tax rates for different sectors. It was learnt that authorities will end discounted sales tax worth Rs 110 billion for different sectors, moreover, government also mulled over introducing new clause in mini budget for imposition of flood levy.

Published in The Daily National Courier, February, 07 2023

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