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Finance Ministry Clarifies IMF Negotiations Focus on External Financing Gap, No Issues with Punjab Electricity Subsidy
The Finance Ministry assures no issues with Punjab's electricity subsidy, while discussions with commercial banks for loans near completion.
ND
by News Desk
2024-09-04
Finance Ministry Clarifies IMF Negotiations Focus on External Financing Gap, No Issues with Punjab Electricity Subsidy

The Ministry of Finance has provided clarity on the ongoing negotiations with the International Monetary Fund (IMF), stating that the discussions are currently focused on bridging the external financing gap. According to a spokesperson for the ministry, there are no complications concerning the Punjab government's electricity subsidy, which had been a point of concern in some quarters.

 

The spokesperson elaborated that Pakistan's talks with the IMF have progressed smoothly, with the international body expressing satisfaction with the rollover from friendly countries. The primary issue at hand remains the external financing gap, and efforts are being made to secure the necessary funds.

 

"We are actively engaged in discussions with commercial banks, including UAE Bank and a global bank, and these talks are now in the final stages," the spokesperson revealed. "We are hopeful for a positive outcome soon, and we are working hard to secure commitments from these banks at the lowest possible interest rates."

 

The spokesperson also addressed concerns about tax collection, noting that there is no ongoing discussion with the IMF on this matter. Instead, the Ministry of Finance and the Federal Board of Revenue (FBR) are focusing on improving tax collection independently of the IMF negotiations.

 

Looking ahead, the spokesperson expressed optimism that the IMF Executive Board would soon approve the staff-level agreement, marking a crucial step forward in Pakistan's economic stabilization efforts.

 

As Pakistan navigates these critical financial discussions, the government's assurance regarding the stability of Punjab's electricity subsidy and the progress in securing external financing are likely to provide a measure of reassurance to both domestic and international stakeholders.
Tagged:

IMF

PakistanEconomy

FinanceMinistry

ExternalFinancing
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