The International Monetary Fund on Monday asked Pakistan to take important reform measures to put the economy on safer path and extended for another two to three days the scheduled talks on the stalled Stand-By-Arrangement (SBA).
Policy-level talks between Pakistan and the IMF scheduled to end today (Tuesday) have been extended for another two to three days, said Dr Abdul Hafeez Sheikh and Adnan Mazarei, Assistant Director, Middle East and Central Asia on the conclusion of day-long negotiations here.
Mazarei said the IMF and the economic team are on the same page with respect to things required to be done on economic front along with social challenges. He described the ongoing talks with economic managers as very positive. Finance Minister Dr Abdul Hafeez Sheikh said weeklong negotiations with the IMF mission remained fruitful. "We discussed macroeconomic framework," he said as well as the nature of Pakistan-IMF collaboration.
Mazarei told media that "important measures need to be taken by Pakistan to put the economy on safer path." On the request of Finance Minister Dr Abdul Hafeez to the IMF officials in Washington on telephone, the mission extended the on-going negotiations for another two to three days to know exactly about the concrete measures being taken by the economic managers to contain the fiscal deficit around 5 percent plus which in the given situation may go over 6 percent for the current fiscal year. The IMF also wanted elimination of subsidies and viable measures to end borrowing from the State Bank of Pakistan as well as possible immediate measures to mobilise revenue.
An official said the IMF mission has agreed to extend the duration of talks for another two to three days on pursuance and assurance by the economic managers that they would finalise and share the modalities for implementation of flood surcharge and special excise duty from April 1, 2011 as well as other reforms.
Hafeez said fiscal deficit at one point in time especially in the wake of the flood seems to cross 8 percent is now, after expenditure control, would be contained 5 percent plus for the current fiscal year. The minister said efforts are being made to put the economy on stable path and a sustainable fiscal framework for economic growth and bringing down the inflation.
On Monday, Pakistan side was led by the finance minister and other members of the delegation including Governor State Bank of Pakistan, Shahid Kardar, Chairman Federal Board of Revenue (FBR), Salman Siddeque, Deputy Chairman Planning Commission Dr, Nadeem ul Haq and Secretary Finance, Dr Waqar Masood.
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