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IMF MD, PM Shehbaz Sharif to meet in Dubai today

by Web Desk
February 11, 2025
in Business
IMF MD, PM Shehbaz Sharif to meet in Dubai today
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ISLAMABAD: Three weeks before the start of review talks for the second tranche of a billion-dollar loan, Prime Minister Shehbaz Sharif and IMF Managing Director Kristalina Georgieva will meet in Dubai today.

Government and diplomatic sources told The Express Tribune that the sideline meeting will take place on the sidelines of the World Governments Summit in Dubai.

The request for the meeting was made by Pakistan. The UAE government is organizing the summit, and the prime minister is accompanied by a high-level delegation including Deputy Prime Minister Ishaq Dar and other key cabinet members.

Finance Minister Muhammad Aurangzeb has been asked to join the meeting upon his return from Lisbon, Portugal. The purpose of the meeting between the IMF MD and the prime minister was not immediately known.

The IMF and the finance ministry did not comment on the meeting between the prime minister and the managing director.

This high-level contact is taking place at a time when Prime Minister Shehbaz Sharif’s government is facing pressure from the real estate sector to reduce transaction tax on plots.

Shehbaz Sharif had postponed the scheduled meeting twice last week in which he was to decide whether to allow a reduction in the income tax rate on the real estate sector and also abolish federal excise duty.

The prime minister had formed a task force led by a cabinet minister to recommend relaxations for the real estate sector.

Pakistan’s salaried class is the most affected by inflation, rising prices and heavy illegal taxes, but Prime Minister Shehbaz Sharif has not formed any task force to alleviate the suffering of the poor salaried class.

Teachers are also on the streets against the government’s decision to abruptly withdraw the 25 percent income tax exemption and collect arrears from July 2022.

According to government sources, Pakistan and the IMF are planning to hold the first review talks in Islamabad from March 3 to March 14. Finance Minister Muhammad Aurangzeb had said a few days ago that the talks would begin in the first week of March.

The Sindh government is optimistic about the success of the talks after the enactment of the agricultural income tax legislation and the resolution of gas prices for domestic power generation plants.

There are also issues regarding amendments to the Pakistan Sovereign Wealth Fund Act, but overall Pakistani officials remain confident about the success of the talks. An IMF mission to assess governance and corruption is already here, and the governance mission is scheduled to meet the Supreme Court and the Judicial Commission of Pakistan this week.

After the conclusion of the ongoing assessment mission on February 14, another full-scale follow-up mission may also visit in April to hold more meetings and finalize recommendations, the sources said.

Pakistan will publish the assessment report in July and its recommendations could lead to additional conditions being added to the 40 conditions already agreed upon. The government will have to implement these conditions for a $7 billion loan over a three-year period.

Tags: commissiongovernmentinternationalNationalsocial mediatime line news
Web Desk

Web Desk

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