“Confident” Pakistan will meet IMF conditions in time: mission chairman IMF mission was updated on economic strategies as Dar emphasized the government’s resolve to reach an accord.
ISLAMABAD: The International Monetary Fund (IMF) review mission, headed by Nathan Porter, met with Pakistan’s Finance Minister Ishaq Dar on Tuesday and stated that they expected Pakistan to satisfy their requirements “in time.”
The IMF team is in Pakistan to discuss strategies for reestablishing domestic and international sustainability, fortifying the nation’s fiscal position, and for reforming the electricity sector.
The agenda for economic and fiscal policies and reforms to complete the 9th review under the Extended Fund Facility was discussed and reviewed during the meeting (EFF).
The team was briefed by the finance minister on the fiscal and economic reforms and actions the government is doing in many sectors, such as closing the fiscal gap, maintaining exchange rate stability, and developing the energy sector.
He claimed that the power industry is undergoing reforms and that a high-level committee has been established to develop strategies to counter the threat of circular debt in the gas sector.
Dar reaffirmed the government’s commitment to finishing the current IMF programme and pledged Pakistan’s cooperation with the IMF in order to reach an agreement on concluding the review under the EFF.
Porter voiced his belief that Pakistan will fulfil the IMF’s conditions in order to complete the 9th review at the time.
He hoped that Pakistan would keep making changes in numerous sectors and would successfully and on time finish the IMF programme.
He further stated that Pakistan and the Fund would collaborate on fiscal reforms.
Following the IMF’s decision to finally consent to the continuation of negotiations under the EFF review, Pakistan is anticipated to narrowly avoid defaulting on its international payments.
In an effort to restart the delayed $6.5 billion loan programme, which, if successful, was scheduled to start early next month, the government has given up control of the exchange rate and allowed market forces to determine the value of the rupee.
The country will be able to increase its foreign exchange reserves, avoid the imminent risk of default, and attract new foreign loan inflows worth $3–4 billion within a few months if the IMF programme is resumed.
While the prime minister has expressed confidence that Pakistan will reach an agreement with the IMF this month to address its financial issues, the IMF programme will have unfavourable effects, including significant inflation starting in February in the region of 29-31%.
