Pakistan and IMF face differences over bailout program

Pakistan and the International Monetary Fund (IMF) were facing divergences over the stringent conditions imposed on key areas of a bailout program, including a further rise in energy prices, further taxes and the full disclosure of Chinese financial support, said a minister in Islamabad.

"There are still gaps in the position of the IMF and in the position we have," Finance Minister Asad Umar said at the end of a series of meetings with an IMF team. yesterday.

However, he said the talks were proceeding positively and the gaps were narrowing, reports Dawn News.

He added that one billion dollars out of the $ 3 billion committed by Saudi Arabia had been handed over to the State Bank of Pakistan yesterday and that the remaining $ 2 billion would be used during the next few years. next days.

Informed sources said the positions of both parties on the need for an increase in the electricity tariff, an upward revision of the revenue target and additional tax measures on Chinese assistance and its impact, both incoming and outgoing.

According to sources, the IMF also asked the provincial governments to fund the Benazir Income Support Program (BISP), rather than the federal government, and asked for cash surpluses committed to minimize the consolidated budget deficit.

Both parties were to conclude the negotiations today.

The IMF mission also sought to obtain a fully market-based floating rate and complete independence at the State Bank of Pakistan.

(This story has not been changed by NDTV staff and is generated automatically from a syndicated feed.)