ADB to help resolve govt-IMF impasse?

ISLAMABAD: As stalemate is witnessed between the government of Pakistan (GoP) and the International Monetary (IMF) on finalisation of sixth staff level agreement prior to the release of the next tranche, the Asian Development Bank (ADB) has decided to despatch John Hurley, the ADB’S Alternative Executive Director/Executive Director (ED) representing the United States government in the ADB Board of Directors (BoDs).

Hurley will be visiting Pakistan on an official visit from November 15 to 20. During the visit he will be meeting with ministers, senior government officials and undertaking the ADB-funded project site visits.

The United States government is the ADB’s largest shareholder, and the Board of Directors, among other business, sets direction for the ADB and takes decisions on approval of loans, guarantees, investments and technical assistance by ADB to developing member countries.

The sources said, after the arrival on November 15, Hurley will hold an internal meeting with ADB’s officials on the ADB’s programme, portfolio and prevailing political/economic situation of Pakistan.

According to sources, after evaluating Pakistan’s political and economic situation internally, he is scheduled to hold joint meeting with Minister for Economic Affairs, Omar Ayub Khan (ADB Governor) Secretary EAD, Mian Asad Hayauddin and ADB desk officers, during which discussion will broadly cover the overall development portfolio of Pakistan, national and sectoral priorities and process.

Briefing on the ADB’s portfolio, program/pipeline and aid coordination and development effectiveness is also on the proposed agenda.

He would hold meeting with IMF’s Resident Representative for Pakistan and discuss country’s macroeconomic situation, fiscal and external account challenges, ongoing Extended Fund Facility and ADB-IMF coordination.

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He would also hold meeting with the Country Director of the World Bank to discuss country’s economic situation, World Bank’s program, and impact of Afghanistan situation.

Hurley would meet Prime Minister’s Advisor on Finance and Revenue, Shaukat Tarin. The discussions will broadly cover country’s macroeconomic conditions, challenges and policies, ongoing IMF program, debt sustainability, medium-term fiscal framework including domestic resource mobilization and ADBs’ potential role.

Hurley is expected to meet with Minister for Energy, Hammad Azhar. Discussion will broadly cover ADB’s Energy Program, government’s energy sector reforms (managing circular debt, integrated energy planning, energy transition and sector roadmap.

ADB’S Alternative Executive Director/Executive Director (ED) representing the United States Government in the ADB Board of Directors (BoDs) will also hold private meeting with the US embassy staff to have an overview of Pakistan and US relations.

He will also hold meeting with Minister for Planning, Development and Special Initiatives, Asad Umar to discuss development policy and national priorities, the PSDP, government’s economic policy, overview of Covid control response and impact on economy and mitigation measures.

He would hold discussions with Chairman FBR on tax reforms, customs harmonization at border points and revenue mobilization measures.

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He is expected to meet Chairman National Highways Authority (NHA) to discuss ADB’s Transport program, regional connectivity aspects, future development plans and sectoral challenges.

Site visit to Taxila integrated Social Protection Program Centre under Ehsaas Strategy and Taxila Museum (displays artifacts from the Ghandhara civilization), site visit to Expresssway-35(co-financed by DFID under Pakistan Economic Corridor Development Program team) and meeting with Special Assistant to the Prime Minister on Poverty Alleviation and Social Safety and Chairperson Ehsaas Program.

Hurley will also visit Lahore and hold meeting with Finance Minister, Punjab, Chief Secretary Punjab to discuss provincial budget resource mobilization, pubic finance management and digital effectiveness and provincial economy, challenges and priorities and ADB’s potential role to meet development needs.

The ADB’s Director General (DG) for Central and West Asia Department is also on a four day visit to Pakistan to broadly discuss ADB's energy program, government’s energy sector reforms.

Copyright Business Recorder, 2021