Pakistan, IMF deadlock over rupee devaluation, tax exemption persists

ISLAMABAD (PEN) – Talks between Pakistan and the International Monetary Fund (IMF) failed to make headway on Saturday as the two sides are yet to reach agreement on a number of key issues.

The IMF demanded the Pakistani authorities to take immediate action to do more to devalue the green back and end tax exemption.

According to the finance ministry, no progress has been made in the talks as the international lender has not yet signaled approval of debt reimbursement to Pakistan.

Sources said that the IMF wanted Pakistani authorities to do more to devalue local currency and withdrawal of tax exemption.

“Pakistan is ready to accept all the remaining conditions of the IMF and the decision to accelerate privatization process and hike in power tariff but Governor State Bank of Pakistan (SBP) Reza Baqir and Secretary Finance failed to convince the international lender.

Spokesperson for the Adviser on Finance said that the dialogues between Pakistan and IMF will be held again next week and a declaration will be released following the successful conclusion of the dialogues.