Negotiations commence between Pakistan, IMF

ISLAMABAD: Talks between Pakistan and the International Monetary Fund (IMF) for the remaining last tranche worth $1.1 billion started here on Thursday.

An introductory session was held between the IMF delegation and the economic team at the Ministry of Finance. The IMF delegation was led by Nathan Porter, while Federal Finance Minister Muhammad Aurangzeb led Pakistan’s economic team.

During the introductory session, the Finance Minister, State Bank Governor, and FBR Chairman briefed the delegation.

During this time, the FBR Chairman outlined plans to achieve the tax target for the current fiscal year and assured the delegation that the target would be met without imposing new taxes.

The delegation, while acknowledging the government’s economic stability efforts, emphasized the need for Pakistan to adopt stringent economic policies for economic stability.

After the introductory session, the IMF delegation departed from the Ministry of Finance.

The IMF delegation will hold discussions with Pakistani authorities until March 18th for an economic review.

Sources said that Pakistan has already achieved the targets set by the IMF for the second review and the country will not present a new mini-budget under the current IMF programme.

Meetings will also be held with senior officials from the Ministry of Finance, Ministry of Energy, FBR, State Bank, Planning Commission, and Petroleum Division.

The Fund Board will approve the Staff Level Agreement, and later release the first tranche of $1.1 billion to Pakistan.

Talking to the media after the initial round of talks, the finance minister said that the IMF programme would help improve the country’s credit rating. 

He said that Pakistan wanted the longest-running programme from the International Monitory Fund (IMF), in the country’s history.

Muhammad Aurangzeb said that Pakistan would make efforts for a big program according to the quota and vowed economic discipline in the IMF programme.

“The improvement of the economy is the goal of our government more than the IMF,” Muhammad Aurangzeb clarified.

He said Prime Minister Shehbaz Sharif’s vision for the improvement of the country’s economy is clear as the premier gave strict instructions to maintain economic discipline.

“There is no obstacle in the release of the last installment of the current loan programme from the IMF,’ the finance minister told media persons.