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3rd round of Pak-IMF talks starts tomorrow
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ISLAMABAD: Third round of talks between Pakistan and International Monetary Fund (IMF) will begin from Saturday (tomorrow) in Dubai and issues of extension in period for withdrawal of subsidy on electricity and matters related to loans will be highlighted in the discussion. Official sources told this news agency Thursday that it was agreed upon in the accord reached between Government of Pakistan and IMF that Pakistan would withdraw subsidy on electricity in the beginning of Financial Year 2009-10 but government had decided to seek extension in the timeframe under the pressure of masses and its coalition partners. Government would request IMF to grant relaxation in timeframe for withdrawing subsidy on electricity till December 31. Sources told that government would have to bear additional expenses of Rs50 to Rs60 billion if it decided against withdrawing subsidy. In this case, the government would have to inform IMF, in writing, how it would meet the budget deficit. Sources further informed that financial assistance amounting to $780 million was likely to be provided by IMF in the third round of talks. Finance secretary Suleman Siddique, Governor State Bank of Pakistan Salim Raza, Chairman FBR, additional secretary finance and senior officials would also participate in the meeting along with Advisor to Prime Minister on Finance Shaukat Tareen.-Online
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