Pakistan and the International Monetary Fund (IMF) have commenced policy-level talks for the disbursement of a $1 billion loan tranche under the ongoing economic programme. According to sources, today’s discussions focus on the National Finance Commission (NFC) and agricultural income tax, with officials briefing the IMF that there is a revenue potential of Rs300 billion from agricultural taxation. A special session on the circular debt management plan is also scheduled. Pakistan has reportedly proposed a Rs1,250 billion reduction in circular debt and is considering borrowing Rs1,250 billion from banks to address the issue.
