ISLAMABAD (National Times) – The International Monetary Fund (IMF) has said that there was no discussion regarding Pakistan’s agreements with China.

The IMF sources revealed inside story of the meetings held with political parties in July 2023.

They said the IMF does not discuss bilateral agreements of member countries.

During the meeting, the stand-by arrangement agreement was discussed and it was suggested to freeze development budget to reduce the deficit. If the circular debt was not controlled, Pakistan would have to increase rates of utilities, the sources added.

They said the IMF termed Pakistan’s economic progress “encouraging,” but pointed out the challenges it was still facing. It urged Pakistan to deal with political instability for sustainable growth.

The donor expressed satisfaction at implementation of its recommendations in the stand-by agreement.

The sources said on-going stand-by arrangement agreement will expire in April after which new programme will be discussed. It is too early to say anything about the new loan programme, they added.

The IMF sources said that widening of tax revenues and tax base was necessary. The donor stressed on betterment in the energy sector.

There is a need to improve the transmission and distribution system, while prices have to be increased systematically so that inflation does not increase.

The sources said the donor left it up to Pakistan seek financial support from financial institutions and friendly countries.