Pakistan–IMF ‘Reach Agreement’ on Most Import Rules

ISLAMABAD: Negotiations between Pakistan and the International Monetary Fund (IMF) have reached their final stage. Both sides have reportedly agreed on several key issues related to import policies. According to sources, most terms are settled, especially on vehicle import restrictions. Talks continue to address remaining concerns before the final agreement is reached.

The IMF has urged Pakistan to completely ban car imports under personal capacity. However, conditional approval will be given for importing commercial vehicles up to five years old. Vehicle import conditions will also be tightened further. These new rules aim to align imports with security and regulatory standards.

Both sides have agreed to ban car imports under personal baggage and transfer of residence schemes. Pakistan will also abolish the gift and baggage import schemes. The IMF has set a deadline of October 15 for Pakistan to revise and strengthen the Transfer of Residence scheme. These changes aim to curb misuse and improve transparency in imports.

However, a deadlock remains over issues of governance and the anti-corruption report. Pakistan has also asked the IMF to retain incentives for Special Economic Zones (SEZs). But the IMF wants these benefits removed gradually. In response, Pakistan has proposed a 10-year phase-out plan. If rejected, all SEZ incentives may be removed.

Meanwhile, talks on the $1.4 billion Resilience and Sustainability Facility have progressed. The deal supports Pakistan’s climate adaptation efforts. The first $400 million tranche is expected to be released soon. Both sides remain hopeful of a successful conclusion to the ongoing negotiations.