Pakistan hopeful of successful completion of IMF first review

Negotiations between Pakistan and the International Monetary Fund (IMF) mission have entered the final phase and Pakistan is hopeful of a successful completion of the first review, reported 24NewsHD TV channel.

According to sources, policy-level talks between the Pakistani authorities and the IMF are starting from today, which will continue till November 15.

Sources said in today's policy-level talks, caretaker Finance Minister Shamshad Akhtar led the delegation in which the Governor State Bank, FBR Chairman, and officials of Ministry of Finance, FBR, State Bank and Ministry of Energy also participated.

Fund’s Mission Head Nathan Porter led the IMF delegation.

It is likely that the IMF will make strict demands on Pakistan.

There is a possibility that the IMF will raise a do-more demand. It could also raise questions regarding external financing requirements and present demands related to tax revenues.

It is also expected that the Fund’s perspective on foreign exchange rates is to come out.

The IMF calls for strict policy on money laundering and suspicious transactions under the guise of imports.

Sources in the Ministry of Finance said that the IMF delegation has conveyed its demands and recommendations. They said that economic data was shared with the IMF during the technical-level negotiations and Pakistan is hopeful for the successful completion of the first review.

Sources further informed that the government presented its plan to the IMF regarding increasing revenue, reducing expenditure, dollar inflows, institutional reforms, national clean air policy, national climate finance strategy, exchange rate, Sukuk bonds for new loans, T-bills, issuance of investment bonds, plan for not giving subsidy in the energy sector, measures to reduce budget deficit, adjustment and reduction in circular debt in power and petroleum sectors.

According to the sources, Pakistan has fulfilled all the important conditions of the IMF for the first review, the staff-level agreement will be finalized in the policy-level negotiations and upon successful completion of the review negotiations, Pakistan will receive the second tranche of $710 million in December. The initial installment of $1.2 billion was disbursed in July as part of the standby arrangement.

 

Reporter Waqas Azeem