Pakistan to brief IMF on deregulation of sugar sector, auto policy

High-level policy review talks between Pakistan and the International Monetary Fund (IMF) are underway, focusing on fiscal targets, reforms, and sectoral deregulation, as both sides work to finalise the Memorandum of Economic and Financial Policies (MEFP) — a key step toward the continuation of the IMF program.

According to sources, the federal secretary of finance is leading Pakistan’s economic team in the ongoing consultations, while Finance Minister Muhammad Aurangzeb is also expected to meet the IMF mission later in the process.

The ongoing talks are centered on finalizing the draft of the MEFP, which outlines Pakistan’s economic strategy and reform commitments for the current fiscal year.

Sources said that the meetings are part of a policy-level review, assessing Pakistan’s progress on previous commitments and its plans for future fiscal consolidation. 

Officials from various departments are participating in sectoral discussions to ensure alignment with IMF requirements and Pakistan’s reform agenda.

The Federal Board of Revenue (FBR) is playing a key role in the discussions, with its Member Customs Policy scheduled to meet the IMF mission to deliberate on tax targets for the current fiscal year.

The talks will also focus on broadening the tax base and implementing steps to increase the tax net, addressing one of the IMF’s primary concerns regarding Pakistan’s revenue generation capacity.

Pakistan’s economic team will brief the IMF on major reform initiatives, including deregulation of the sugar sector, the auto policy, and tariff reforms across multiple industries. 

According to sources, deregulation of the sugar sector aims to reduce government control over the industry, allowing market forces to determine production levels and prices. The move is designed to enhance efficiency, reduce distortions, and promote competition in the domestic sugar market.