ISLAMABAD: An International Monetary Fund (IMF) mission is arriving in Pakistan on Wednesday for a second and last review of a $3-billion standby arrangement, two sources said.
The four-day review begins on Thursday, said two finance ministry officials, who were speaking on condition of anonymity because they were not authorised to disclose the information.
Islamabad secured the last-minute package last summer to avert a sovereign default.
The last review, if successful, will release a tranche of around $1.1 billion.
Prime Minister Shehbaz Sharif has already directed his finance team, headed by newly-appointed Finance Minister Muhammad Aurangzeb, to initiate work on seeking an Extended Fund Facility (EFF) after the standby arrangement expires on April 11.
Aurangzeb told reporters that the team was arriving this week, without mentioning a date. He also said the EFF would entail implications on the budget, therefore, the Fund input, indeed, would be needed.
Aurangzeb said his priority would be that preliminary talks are held on a blueprint (actions to be taken under the EFF) but the actual talks will be held with the Fund during the spring meeting.
Meanwhile, the lender has already said it is ready to formulate a medium-term programme if Islamabad applies for one.
SBA talks: Govt to have little ‘manoeuvrability’ to cut utility prices
Aurangzeb, who was picked over several other aspirants, including former four-time finance minister Ishaq Dar, has to bring stability to a country plagued by crippling boom-bust cycles that have in past led to nearly two dozen IMF bailout programmes.
The debt-ridden economy, which contracted 0.2% last year and is expected to grow around 2% this fiscal, has been under extreme stress with low reserves, a balance of payment crisis, inflation at 23%, policy interest rates at 22% and record local currency depreciation.
Comments
Comments are closed.