Tag: IMF Pakistan talks

  • IMF to continue talks on Pakistan’s economic reform goals

    IMF to continue talks on Pakistan’s economic reform goals

    The International Monetary Fund (IMF) remains engaged in discussions with Pakistan on policy goals and actions to establish a medium-term, home-grown reform programme that could be supported under the Extended Fund Facility (EFF) arrangement.

    Julie Kozack, Director of the Communications Department at the IMF, highlighted this in a recent press briefing. She emphasised that the reform programme under consideration aims to enhance economic credibility through the consistent application of sound policies.

    The objective is to transition Pakistan from economic stabilisation to robust, inclusive, and resilient growth, ultimately improving the living standards of the Pakistani people.

    The IMF also noted significant progress towards a staff-level agreement with Pakistan.

    Addressing a query about the recent mission to Pakistan, Kozack stated, “Since our mission to Pakistan from May 13 to May 23, our staff has visited Islamabad. We will continue to discuss policy goals and actions that could form the basis of a medium-term, home-grown reform programme for Pakistan that could be supported under the EFF arrangement with the IMF.”

    Regarding the prior actions and the 2024-25 budget, she mentioned that discussions between the IMF team and Pakistani authorities are ongoing and that further information would be communicated in due course.

    Kozack further elaborated on the 2023 Stand-by Arrangement (SBA) for Pakistan, explaining that its goal is to return to stability and to maintain, broaden, and extend this stability to establish a foundation for sustainable growth.

  • IMF bailout talks with Pakistan set to commence this week

    IMF bailout talks with Pakistan set to commence this week

    The International Monetary Fund (IMF) is poised to initiate crucial discussions with Pakistan this week.

    Esther Perez Ruiz, the IMF representative, confirmed that a delegation, led by Nathan Porter, will embark on talks with Pakistani authorities to delve into the prospects of a new loan programme.

    The primary agenda of these discussions will revolve around forging a robust governance framework aimed at fostering enduring economic stability.

    Ruiz said that the focus will be on fostering sustainable and inclusive economic growth that extends its benefits to all segments of the Pakistani populace.

    Technical experts from the IMF arrived in Pakistan on May 10, geared up for deliberations on both a fresh loan programmeme and budgetary preparations.

    However, Pakistan finds itself grappling with significant economic hurdles, notably the setback of a tax amnesty scheme proposed by the IMF.

    The government’s pledge to incorporate 3.1 million traders into the tax net under this scheme has fallen short of expectations, casting a shadow over the Federal Board of Revenue (FBR), particularly amid recent changes in senior officials.

    These discussions come hot on the heels of Pakistan receiving the long-awaited $1.1 billion final tranche from the IMF under the $3 billion standby arrangement.

    The State Bank of Pakistan (SBP) confirmed the receipt of Special Drawing Rights (SDR) 828 million, equivalent to $1.1 billion, following the successful completion of the second review by the IMF Executive Board under the Stand By Arrangement (SBA).

    With an eye towards the future, Pakistan is aiming for a new, more substantial IMF loan over an extended period.

    Finance Minister Muhammad Aurangzeb has hinted at the possibility of securing a staff-level agreement on the new programme by early July.

    The proposed loan is anticipated to span at least three years, with the objective of bolstering macroeconomic stability and implementing overdue but necessary structural reforms.

    The specifics of the programme remain undisclosed, but if realised, it would mark Pakistan’s 24th IMF bailout.