Ahmed Mukhtar Naqshbandi
ISLAMABAD: Finance Minister Ishaq Dar on Friday said that after conclusion of the staff-level talks on the Extended Fund Facility (EFF), the International Monetary Fund (IMF) and Pakistan would start a virtual discussion on the Memorandum of Economic and Financial Policies (MEFP) from the next week (Monday, Feb 13). IMF staff have handed over MEFP to FInance MInistry before leaving Islamabad.
“Good news is [that] as per their commitment, the team has gone according to their plan. As per their commitment, we have received MEFP. The draft is with us, we will study it and from Monday we will engage in virtual discussion with the fund,” Dar said while addressing a press conference.
Measures to Take
Dar said, “We have to implement new taxes worth Rs 170 billion against the reporting of Rs 500 to Rs 600 billion of taxes, people were talking and we will curtail losses of gas and electricity sector with circular debt in gas sector should be zero.”
He also said that PDL (Petroleum Development Levy) on diesel will be imposed by Rs 5 each on March 1 and March 5. Moreover, BISP will be increased by Rs 40 billion to Rs 400 billion.
Imf and government have been following standard procedures. Before travelling they gave the Finance Ministry the Memorandum of Economic and Financial Policies (MEFP).
MEFP Handed Over By IMF
“We will review the document (MEFP) till Monday and then again we will hold talks on Monday with IMF (on video link), there are several measures proposed need to be addressed”, said the minister.
He also stated, “We have to stop bleeding of the economy, in last three years economy turned bad to worse and cost of electricity is Rs 3000 billion while collecting Rs 1800 billion”.
He said that the ten days dialogues have ended positively and the government will complete the IMF program for 2nd time.
Pakistan to complete IMF programme
Dar said the government was committed to fulfill its sovereign commitments and would complete the International Monetary Fund programme for the second time in the history of the country.
He was of the view that once completed and approved by the IMF executive board, Pakistan would get a $1.2 billion tranche under the Extended Fund Facility.
IMF Staff Concludes Visit to Pakistan – (IMF Statement)
End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. This mission will not result in a Board discussion.
Washington, DC: An International Monetary Fund (IMF) mission led by Mr. Nathan Porter visited Islamabad during January 31 – February 9 to hold discussions under the ninth review of the authorities’ program supported by the IMF Extended Fund Facility (EFF) arrangement. At the end of the visit, Mr. Porter issued the following statement:
“The IMF team welcomes the Prime Minister’s commitment to implement policies needed to safeguard macroeconomic stability and thanks the authorities for the constructive discussions.
“Considerable progress was made during the mission on policy measures to address domestic and external imbalances. Key priorities include strengthening the fiscal position with permanent revenue measures and reduction in untargeted subsidies, while scaling up social protection to help the most vulnerable and those affected by the floods; allowing the exchange rate to be market determined to gradually eliminate the foreign exchange shortage; and enhancing energy provision by preventing further accumulation of circular debt and ensuring the viability of the energy sector. The timely and decisive implementation of these policies along with resolute financial support from official partners are critical for Pakistan to successfully regain macroeconomic stability and advance its sustainable development.
“Virtual discussions will continue in the coming days to finalize the implementation details of these policies.”
