ISLAMABAD: The International Monetary Fund (IMF) has reportedly asked Pakistan to deregulate its sugar sector, while the Sindh government has objected to the federal sugar policy, describing it as interference in provincial autonomy.
According to sources, the government has started work on preparing economic and financial policies in line with the IMF’s requirements. Discussions are also continuing between the IMF mission and officials from key ministries, including the Petroleum Division and Power Division.
Sources said the IMF sugar sector Pakistan discussions remain unresolved because of differences between the federal government and Sindh. The provincial government has reportedly opposed aspects of the proposed sugar policy, arguing that the federal approach could affect provincial autonomy. As a result, a final agreement on the sugar policy has yet to be reached.
The IMF mission is also scheduled to hold another meeting with officials of the Ministry of Finance. During the ongoing negotiations, both sides are expected to review outstanding policy matters and work toward an understanding on the economic and financial measures required under the IMF programme.
Meanwhile, the IMF has reportedly sought the removal of tax exemptions for electric vehicles under Pakistan’s auto policy. However, sources said the Fund has agreed in principle to the continuation of a fuel subsidy for eligible consumers, subject to certain conditions. The IMF has reportedly stressed that the number of beneficiaries should not be expanded.
According to sources, the proposed fuel subsidy is expected to remain limited to owners or users of smaller vehicles. The IMF mission is also scheduled to meet Petroleum Ministry officials, with discussions expected to cover the gas tariff structure and the circular debt situation in the gas sector.
The IMF mission will also hold talks with officials of the Ministry of Privatisation. The discussions are expected to include the proposed privatisation of power distribution companies (DISCOs) and measures to address line losses. Meanwhile, sources said negotiations between the IMF mission and the Federal Board of Revenue (FBR) have already been completed.
