ISLAMABAD: A delegation of the International Monetary Fund (IMF) will visit Pakistan in May to discuss $1.7 billion subsidies on petroleum and electricity prices that were announced by former premier Imran Khan’s government, the Pakistani finance ministry said on Sunday.
Pakistan and the IMF have been in talks for the completion of the seventh review under the IMF’s Extended Fund Facility, which has disbursed $3 billion out of the stipulated $6 billion to the South Asian country.
The discussions were stalled after the IMF expressed concerns over the former government’s around $1.7 billion relief package, including freezing of petroleum prices and cut in electricity tariff in response to rising inflation.
In February, former prime minister Imran Khan had announced the cuts in fuel and electricity prices despite a steep global rise in the cost of oil, pledging to freeze the new rates for four months with the price differential being covered by the government.
"An IMF mission lead by Mission Chief Mr Nathan Porter will visit Pakistan in May to discuss the issues around subsidies on petrol and electricity announced by the outgoing government," the Pakistani finance ministry said in a statement.
Pakistan's finance minister, Miftah Ismail, is currently in Washington to attend 2022 spring meetings of the IMF and the World Bank Group (WBG), and to hold discussions for the revival of the stalled $6 billion loan program.
The Pakistani delegation on Sunday discussed pathways to complete the seventh review of the $6 billion program in its meetings with IMF Deputy Managing Director Antoinette Sayeh, Middle East and Central Asia Director Jihad Azour and Mission Chief Nathan Porter.
Ismail laid out his government’s priorities and efforts to bring fiscal discipline, while insulating the vulnerable segments from oil price volatility in the international markets.
"The IMF expressed support to the Pakistan delegation," the finance ministry said.
The delegation also met World Bank Managing Director Axel von Trotsenburg, Vice President Hartwig Schafer and other officials.
The two sides discussed progress of on-going program loans and projects as well as avenues for further assistance.
