ISLAMABAD – Virtual negotiations between Pakistan and the International Monetary Fund (IMF) are underway as both sides work to finalize a staff-level agreement, with talks currently centered on four key reform areas, sources said on Saturday.
According to officials from the Ministry of Finance, provincial governments have requested more time to implement the agricultural income tax, citing the severe impact of recent floods on the agricultural sector. Provinces argue that immediate enforcement of the tax would further strain farmers already hit by heavy losses.
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The IMF has also sought to include Pakistan’s wheat procurement policy in the Memorandum of Economic and Financial Policies (MEFP). The Fund has asked Islamabad to propose a new mechanism for wheat procurement — potentially involving open market purchases or private sector participation — rather than relying solely on government procurement agencies.
Another focal point of the talks is the mandatory declaration of assets by public officials, as well as the Corruption and Governance Diagnostic Assessment Report. The government has reportedly requested additional time to publish this sensitive report.
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Sources added that Pakistan’s economic team has asked the IMF to relax certain structural benchmarks to expedite the finalization of the staff-level agreement, which will pave the way for the next tranche of funding.
Negotiations are expected to continue over the weekend as both sides seek to bridge differences and move toward a formal understanding.