6th review: IMF accepts Pakistan's request to reschedule, says finance ministry

Pakistan' finance ministry confirmed on Monday that the International Monetary Fund (IMF) has agreed to its request to reschedule the sixth review of the $6-billion Extended Fund Facility (EFF), after earlier stating that it would be held on January 12.

Muzzammil Aslam, in his capacity as spokesperson of the Ministry of Finance, said that the Finance Division "officially requested the IMF to reschedule the meeting of the Board of Director for the approval of 6th review till end January".

Aslam later confirmed that the IMF has accepted the request.

6th Review of $6bn EFF: IMF board to take disbursement decision only after passage of bills

Earlier, Business Recorder had reported that the IMF removed Pakistan’s agenda from the Executive Board calendar soon after it announced to take the Sixth Review of the $6 billion EFF in its meeting scheduled for January 12.

The IMF Executive Board calendar was updated on Thursday last week on its website, showing that its meeting has been scheduled for January 12, 2022 and the agenda includes Pakistan - 2021 Article IV Consultation, Sixth Review under the Extended Arrangement, under the Extended Fund Facility, and Requests for Waivers of Nonobservance of Performance Criteria and Rephasing of Access.

However, later Pakistan’s agenda was removed.

It has been stated that the Finance (supplementary) Bill and the State Bank of Pakistan (SBP) Amendment Bill, 2021 are prior conditions needed for the sixth review of the $6 billion EFF to get cleared by the IMF’s executive board.

Reason for delay

Meanwhile, in a separate statement on Monday (today), Aslam said the government has introduced both bills in the National Assembly and "as soon as the legislative procedures are completed, the IMF board will consider it for approval”.

IMF Board to meet on 12th, agenda includes Pakistan

Completion of the review would make available SDR 750 million (about $1,059 million), bringing total disbursements under the EFF to about $3,027 million.

Last year in November, Pakistan and the IMF reached a staff-level agreement on policies and reforms needed to complete the sixth review under the $6 billion EFF.