Pakistan, IMF to start third round of talks on Saturday in Dubai

ISLAMABAD: Third round of talks between Pakistan and International Monetary Fund (IMF) will begin from Saturday in Dubai and issues of extension in period for withdrawal of subsidy on electricity and matters related to loans will figure in the discussion.

Official sources told Online Thursday it was agreed upon in the accord reached between government of Pakistan and IMF that Pakistan would withdraw subsidy on electricity in the beginning of new financial year 2009-10 but government had decided to seek extension in the time frame under the pressure of masses and its own coalition partners. Government would make request to IMF to grant relaxation in time frame for withdrawing subsidy on electricity till December, 31.

Sources told government of Pakistan would have to bear additional expenses of Rs 50 to 60 billion in case subsidy was not withdrawn. Government of Pakistan would have to inform IMF in writing how it would meet the budget deficit.

Sources informed Online financial assistance amounting to $780 million was likely to be provided by IMF in the third round of talks. Finance secretary Suleman Siddique, governor state bank Salim Raza, chairman FBR, additional secretary finance and senior officials would also participate in the meeting. Advisor to prime minister on finance Shaukat Tareen was also likely to attend the meeting.

Talking to a private TV channel , Shaukat Tareen said hike in power tariff would be discussed with IMF, World Bank and other donor agencies. Country was facing power shortfall ranging between 3000 and 4000 megawatt at present , he said adding government was fully alive to the difficulties of masses with regard to load shedding and all out efforts were being launched to overcome this crisis. Effective strategy was being evolved for resolution of problem of circular debt and payment of outstanding dues of the companies, he underlined.ISLAMABAD: Third round of talks between Pakistan and International Monetary Fund (IMF) will begin from Saturday in Dubai and issues of extension in period for withdrawal of subsidy on electricity and matters related to loans will figure in the discussion.

Official sources told Online Thursday it was agreed upon in the accord reached between government of Pakistan and IMF that Pakistan would withdraw subsidy on electricity in the beginning of new financial year 2009-10 but government had decided to seek extension in the time frame under the pressure of masses and its own coalition partners. Government would make request to IMF to grant relaxation in time frame for withdrawing subsidy on electricity till December, 31.

Sources told government of Pakistan would have to bear additional expenses of Rs 50 to 60 billion in case subsidy was not withdrawn. Government of Pakistan would have to inform IMF in writing how it would meet the budget deficit.

Sources informed Online financial assistance amounting to $780 million was likely to be provided by IMF in the third round of talks. Finance secretary Suleman Siddique, governor state bank Salim Raza, chairman FBR, additional secretary finance and senior officials would also participate in the meeting. Advisor to prime minister on finance Shaukat Tareen was also likely to attend the meeting.

Talking to a private TV channel , Shaukat Tareen said hike in power tariff would be discussed with IMF, World Bank and other donor agencies. Country was facing power shortfall ranging between 3000 and 4000 megawatt at present , he said adding government was fully alive to the difficulties of masses with regard to load shedding and all out efforts were being launched to overcome this crisis. Effective strategy was being evolved for resolution of problem of circular debt and payment of outstanding dues of the companies, he underlined. link....