IMF Urges Pakistan to End Subsidies for Exporters

The International Monetary Fund (IMF) has directed Pakistan to end subsidies for exporters. Sources said that the lender has asked Pakistan to end subsidies for exporters or link them with the actual exports after confirmation from the State Bank of Pakistan (SBP). The IMF during the recent talks also held discussions with Ministry of Commerce (MoC) officials on subsidies to exporters as well as reducing tariffs on imports. Sources said that the IMF was pressing the Pakistani side to ease restrictions on imports. They have a point of view that Pakistan should open imports for all kinds of items. Sources said that the Pakistani side, especially the MoC officials, has a point of view that local industry should be protected, and if Pakistan ends the ban on imports, then foreign reserves would decrease. However, despite the concerns of the Pakistani authorities, IMF officials have insisted on ending the import ban. Sources said that the IMF and Finance Division principally agreed to reduce tariffs on imports in the upcoming budget.