Pakistan and IMF starts negotiations today in Islamabad

A 10 member delegation of IMF headed by Jeffry Frank has arrived in Islamabad and is holding discussions with Pakistani officials. Pakistani negotiating team is headed by Finance Minister Ishaq Dar and helped by officials from Ministry of Finance.

Ishaq Dar will brief the IMF on the budget priorities of the government. Ishaq Dar is expected to defend the priorities of his government highlighting the cost cutting measures taken by it and increase in the GST to cover for fiscal deficit.

Analysts are expecting that the IMF delegation will insist upon the government to reduce subsidies, increase the power tariff to reflect the market realities, increase the tax net and contain government expenditure. Government of Pakistan is expected to seek loans to the tune of 3-5 billion dollars.

The negotiations are expected to last four to five days.

Note: This story will be updated as new information is gathered.

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