State minister for finance says ‘things are moving in right direction’ as PM has approved decisions as per IMF directives for loan revival n Govt trying not to burden common man as the rich will share increased power tariffs and taxes n Pak-IMF talks to conclude today. ISLAMABAD - The federal government is optimistic that the talks between Pakistan and International Monetary Fund (IMF) would successfully conclude today saying “things are moving in the right direction”. Federal Minister of State for Finance Ayesha Ghaus Pasha told media yesterday that the negotiations with the IMF are now coming to an end. She said that the government is trying hard not to burden the common man, as the burden of electricity tariff and taxes would be put on rich people. The minister informed that Prime Minister Shehbaz Sharif has given the approval of the decisions, which would be taken on the IMF direction to revive loan programme. She said that Pakistan needs an agreement with the IMF.
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Meanwhile, an official informed that major differences between the two sides have been resolved. However, some of the issues are there, which would be settled by Thursday. The policy level talks are scheduled to conclude today. Both the sides are working to finalize a memorandum of economic and financial policies (MEFP), which is likely to be finalized today. Meanwhile, the visiting delegation met with Federal Minister for Finance and Revenue Ishaq Dar. The government has assured the Fund to take difficult decisions for the loan revival. The official said that the Prime Minister has also given assurance to implement the IMF programme. The government has already accepted some of the tough conditions of the IMF including increasing electricity prices, bringing a mini budget by increasing standard rate of General Sales Tax by one percent to 18 percent. The IMF has agreed on the conditional waiver of approximately Rs500 billion, used for the flood related activities, in the primary deficit. The Fund has asked Pakistan to bring verification of the expenditures of Rs472 to Rs500 billion, which according to Pakistan claim, had been issued for the rehabilitation of flood affected areas, the source said. Pakistan has committed with IMF for the reduction of 0.8 percent in primary deficit, but instead the deficit was increased to Rs1100 billion. However, Pakistan has attributed the increase in primary deficit with the government’s expenditure in flood affected areas. The government has already accepted some more IMF demands. The government has allowed banks’ access to asset declarations of civil servants of BS-17-22 as a prior condition for the opening of bank accounts as part of good governance and anti-corruption measures. The government in the last week had decided to end its control on its prices in order to fulfil the conditions of the International Monetary Fund (IMF) officials to revive the loan programme.
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