Aurangzeb kicks off talks with IMF mission

Finance Minister Muhammad Aurangzeb began talks with a visiting IMF staff team on Tuesday, according to Business Recorder, through a virtual kick-off session. The negotiations cover the fourth review under the Extended Fund Facility, valued at USD 7 billion, along with a third review of the USD 1.4 billion Resilience and Sustainability Facility. The government reiterated that it will keep carrying out agreed structural reforms.

Aurangzeb briefed the Fund on recent economic developments, gains in the country's credit standing and the wider investment climate. Officials described the prolonged Iran conflict as a difficult external backdrop, noting possible effects on energy costs, outside funding and the external accounts. Completing both reviews would open the way for about USD 1.2 billion in disbursements by late October or early November, split between roughly USD 1 billion from the EFF and USD 200 million from the RSF.

The IMF team also went through the planned auto policy with the Ministry of Industries and Production, covering tax relief for battery-powered and hybrid cars. According to sources, officials presented proposed tax measures for the automotive industry to the Fund.