ISLAMABAD:
The International Monetary Fund (IMF) board expressed its concerns about Pakistan’s poor record and urged it to finish the new program to decrease the trust deficit the day after accepting the $3 billion rescue package.

The trust gap between Islamabad and the IMF was discussed in a phone call between Prime Minister Shehbaz Sharif and IMF Managing Director Kristalina Georgieva on Friday.
According to the Express Tribune’s authoritative sources, IMF Executive Director Bahador Bijani personally delivered the message to Finance Minister Ishaq Dar via electronic communication on behalf of the board.
The call was placed on Thursday, a day after the Stand-By Arrangement (SBA) program’s $3 billion funding was approved by the IMF’s board.
Representative for Algeria, Ghana, Iran, Libya, Morocco, Pakistan, and Tunisia, Bijani is one of the 24 executive directors on the IMF board. According to the sources, the board had requested that Bijani deliver the firm message to Pakistan.
Directors voiced “serious concerns” about Pakistan’s poor track record in executing reforms and honoring pledges made to the IMF board and the management during the previous programme period, according to people familiar with the meeting.
Unable to distribute the whole $6.5 billion, the Extended Fund Facility program concluded on June 30 with $2.6 billion still in escrow.
According to the sources, Bijani conveyed the board’s feelings to Dar so that Islamabad would not become complacent once the new nine-month schedule was approved.
The Treasury Department declined to issue a statement. After the meeting between Dar and Bijani, no announcement was made.
Georgieva was quoted as saying, “the IMF board was sceptical about Pakistan’s commitment to fulfilling the conditions of agreement due to the past trust deficit,” according to a handout distributed by the Prime Minister’s Office.
But “in light of her ongoing engagement with the prime minister,” she assured the board that Pakistan will fulfill its promises since she had seen firsthand the prime minister’s seriousness to do so. That was an extra.
She praised the prime minister for his decisiveness.
Pakistan’s case was last on the agenda of the IMF board in August 2022, and the ninth review was set to be approved at a meeting in November 2022.
However, the board did not examine Pakistan’s case until last month, when it gathered informally to decide whether or not to give Pakistan another chance despite its dismal track record.
The board decided to keep communicating with Pakistan at their June 28 informal meeting.
After that, on June 30th, the IMF staff announced a deal with Pakistan, and on Wednesday, the board accepted it.
According to the sources, the IMF board told Pakistan that this was the country’s last chance to improve its dismal standing. The board warned Pakistan that it would make no more accommodations if the new scheme was not implemented.
They also mentioned that the trust gap between the two countries may be reduced if Pakistan finished the current program.
“steadfast implementation” of the nine-month Stand-by Arrangement (SBA) is crucial to Pakistan’s future, IMF Director of Strategic Communications Julie Kozack said on Thursday.
On Thursday, she issued a statement in which she emphasized the importance of “steadfast implementation” in meeting the program’s “large financing needs” and helping the program’s “most vulnerable” beneficiaries.
The communications director emphasized that sustained reforms over the medium term would be required to underpin the necessary economic transformations to strengthen inclusive growth prospects and to create an environment conducive to renewed private capital inflows in order to address Pakistan’s structural challenges.
Members of the board also expressed disappointment with Pakistan’s inconsistent changes and the country’s repeated failure to live up to its promises.
Pakistan has already signed 23 separate programmes with the IMF. Only one program (2013-2016) has been fully completed so far, and that was only possible due to a number of waivers against essential conditions.
Although it may be difficult due to the involvement of three successive governments from now until the expiration of the programme in March next year, the Pakistani authorities have showed the resolve to implement the existing programme.