Pakistan not on IMF board’s agenda
- The current IMF programme of $6.5 billion is scheduled to end on June 30
ISLAMABAD: The International Monetary Fund (IMF) Executive Board has issued meetings scheduled till June 29, but Pakistan is not on the agenda as the 9th review under the Extended Fund Facility (EFF) programme remains pending.
The current IMF programme of $6.5 billion is scheduled to end on June 30, 2023, with around $2.6 billion remaining undisbursed.
According to the IMF Executive Board calendar available on its website, next meetings are scheduled for 20, 21, 22, 26, 27, 28 and then again on June 29, 2023; however, Pakistan is not on the agenda though it could be added in the event that the ninth review is declared a success.
As per the IMF Staff report “Pakistan: Seventh, and Eighth Reviews of the extended arrangement,” the proposed schedule for the ninth review was November 3, 2022, but was delayed due to the failure of the government to implement agreed time-bound conditions and structural benchmarks, as well as, violation of the spirit of the agreed seventh/eighth review particularly with respect to controlling the rupee rate artificially without the necessary reserves to intervene in the market and extending unfunded subsidy.
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The tenth review’s schedule as per the seventh/eighth review documents was February 3, 2023, but the ninth review is yet to be completed.
The IMF Resident Representative in Pakistan last week through a text message told Business Recorder that Staff remains engaged to discuss policies to maintain stability.
“However, the draft fiscal year 2024 Budget misses an opportunity to broaden the tax base in a more progressive way, and the long list of new tax expenditures reduces further the fairness of the tax system and undercuts the resources needed for greater support for vulnerable BISP recipients and development spending.
“The new tax amnesty runs against program’s conditionality and governance agenda and creates a damaging precedent. Measures to address the energy sector’s liquidity pressures could be included alongside the broader budget strategy.
“The IMF team stands ready to work with the government in refining this Budget ahead of its passage.”
Copyright Business Recorder, 2023
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