Pak-IMF talks for bailout package start today.

Byline: Imran Ali Kundi

ISLAMABAD -- Pakistan would start negotiations with International Monetary Fund (IMF) for bailout package today (Wednesday) to avert the balance of payment crisis of the country.

A delegation of the IMF has arrived in Pakistan for the talks which would continue till November 20. In mid October, Pakistan had formally requested the IMF for a loan programme during the fund's annual meetings in Indonesia. The current talks are aimed at reaching a staff-level agreement, which would be submitted to the IMF's executive board for consideration.

The IMF programme will require six to eight weeks for approval after things settle in the talks, according to an official of ministry of finance. He further said that government would present Memorandum of Economic and Financial Policies (MEFP) to IMF. The MEFP indicates the government's policies to bring reforms and other measures to stabilize the economic situation of the country. He informed that government has not decided yet about the volume of loan package from the Fund but he hinted it would be around $9 to $12 billion.

Pakistan would brief the IMF about its measures to control the widening current account deficit and budget deficit. It would also inform the delegation about tax collection of Federal Board of Revenue (FBR) and its drive to broaden the tax base of the country. Similarly, the government would brief the visiting delegation about its plan to build the foreign exchange reserves of the country.

During the talks, the government would inform the Fund about its privatisation policy. The Cabinet Committee on Privatization had recently decided to delist Pakistan Steel Mills (PSM), PIA, Pakistan Railways, Utility Stores Corporation, National Highway Authority (NHA) and CAA from the privatization list. During the previous talks, the IMF continuously emphasized the government to privatize the PIA...