IMF to agree on Pakistan’s industrial promotion package

IMF to agree on Pakistan’s industrial promotion package

ISLAMABAD: Pakistan and International Monetary Fund (IMF) likely to reach an understanding on the industry promotion package i.e. amnesty scheme in the ongoing 7th review, an official statement said on Thursday.

Pakistan earlier this month announced an amnesty scheme for setting up new industrial units at a reduced income tax rate and without interrogation of funds utilized.

According to the statement, sections of the media have been speculating recently about the on-going 7th review under IMF’s Extended Fund Facility (EFF).

It is clarified that negotiations under the 7th review are continuing as planned and the two sides remain engaged on a regular basis at a technical level through virtual meetings and data sharing.

The focus of negotiations under the 7th review has been on the agreed targets between the two sides, as well as the recently announced relief and industrial promotion packages.

There is a consensus that all the end-December agreed targets have been achieved, while progress on other actions mentioned in the Memorandum on Economic and Financial Policies (MEFP) for the 6th review has also been found to be satisfactory.

On the relief package, complete details, including financing options, have been shared with the IMF and a general understanding has been developed.

“IMF has, however, indicated the need for some further discussions on the industrial promotion package over the next few days. An understanding is expected to be developed on the said package subsequent to those discussions.”

Upon completion of the technical talks, the text of Memorandum on Economic and Financial Policies (MEFP) for the 7th review will come under discussion.

The government is confident that the finalization of the MEFP would lead to IMF Board meeting towards the end of April. The Government remains committed to completing the IMF program successfully in September.