ISLAMABAD: Confirming that the tax amnesty scheme for the industrial sector required ‘further discussions’ with the International Monetary Fund (IMF), the finance ministry is hoping to take its case to the Fund’s executive board towards the end of next month.

In a statement issued here, the ministry said that complete details of the relief package announced by the prime minister, including financing options, had been shared with the IMF and a general understanding had been developed.

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

Finance ministry hopes to take its case to the Fund’s executive board

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

“The government is confident that the finalisation of the MEFP would lead to IMF board meeting towards the end of April,” the statement said, adding that the government remained committed to completing the IMF programme successfully in September.

The statement said that talks under the 7th review were continuing and the two sides remained engaged on a regular basis at the technical level through virtual meetings and data sharing. The focus of negotiations under the seventh 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 MEFP for the sixth review had “also been found to be satisfactory”.

Published in Dawn, March 25th, 2022