To facilitate negotiations with the International Monetary Fund, the government has decided to appoint Miftah Ismail, a former Finance Minister, as Finance Adviser (IMF).
According to Ministry of Finance sources, until the formal announcement of the federal cabinet is made, Miftah Ismail, the former Finance Minister, will be appointed as Advisor to the Prime Minister of Finance Affairs to facilitate talks with the IMF.
The government wants to resume talks with the IMF on the Extended Fund Facility (EFF) program as soon as possible, as the IMF Board is expected to approve a $1 billion loan to Pakistan in the coming weeks.
Miftah Ismail will take part in the IMF talks, which begin tonight. According to sources, the IMF is putting pressure on the government to raise the price of electricity and end the subsidy on petroleum products, as announced by former Prime Minister Imran Khan in his final month in office. The IMF demands an increase in the petroleum development levy, which is currently zero, as a condition for the 7th review to be approved. The IMF has also ordered a change in income tax slabs and the elimination of cross-subsidies in various sectors, particularly in the energy sector.