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Print Print 2023-11-03

IMF knows full well SOEs govt’s Achilles heel

  • Shamshad Akhtar shares progress on the Standby Arrangement and briefs IMF on fiscal measures being taken by the government to improve economic situation
Published November 3, 2023

ISLAMABAD: The International Monetary Fund (IMF) staff-level mission led by its Mission Chief, on Thursday, held a meeting with the caretaker Finance Minister Dr Shamshad Akhtar before embarking on the technical-level discussion from Friday (Nov 3)

The Finance Ministry, in a statement, said the caretaker finance minister held a meeting with IMF review mission led by IMF Chief Nathan Porter at the Finance Division.

The meeting was attended by IMF resident representative Esther Perez Ruiz, SBP Governor Jamil Ahmed, Chairman FBR, Chairman SECP, Secretary Finance, members of the IMF delegation and senior officers from the Finance Division.

Govt appears confident ahead of SBA talks

Shamshad Akhtar welcomed the delegation and shared progress on the Standby Arrangement (SBA) and briefed the mission on fiscal measures being taken by the government to improve the economic situation.

The meeting also included discussions on comprehensive reforms and measures undertaken by the Federal Board of Revenue (FBR) and the government’s strategies to address the circular debt issue.

Nathan Porter appreciated the government’s commitment to meeting the 1st quarter targets and commended the government’s efforts and measures taken in some critical areas. He further underscored the importance of continuation of these efforts for staying on track for economic stability of the country.

The caretaker finance minister expressed her appreciation for the continued support and assistance of the IMF. She reaffirmed the government’s commitment to working closely with the IMF to ensure successful completion of the SBA and achieve the economic objectives, the ministry added.

An official, on condition of anonymity, said that the IMF team wanted a briefing on the State-Owned Enterprises (SOEs) and it was assured that a briefing in this regard would be arranged.

The staff mission, sources added, also wanted to know how the government would proceed in future on implementation.

The discussions on the technical level talks would be followed by the policy level. Policy level talks would be headed by the caretaker finance minister, which are likely to continue for around two weeks. During the technical level talks, ministries and Divisions would share data of their respective sectors with the IMF for review.

Copyright Business Recorder, 2023

Comments

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Ashfaq Ahmed Nov 03, 2023 07:10am
All subsides have been taken from exporter, electric unit has increased from 23 to 55 , increase in fuel prices have increased cost of production & sudden fall of $ to Rupee has incurred a huge loss to exporter whose payments were pending. moreover exporter is very demotivated
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Ash Chak Nov 03, 2023 08:12am
Misleading title. Where is the Achilles Heel?
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Awami Nov 03, 2023 08:57am
@Ashfaq Ahmed , I have heard exporters can get insurance against loss of Rupee against US dollar.
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adil Nov 03, 2023 09:30am
@Awami, they use hedging which mostly cover their loss in case of currency apprecation
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Ch K A Nye Nov 03, 2023 09:53am
@Ashfaq Ahmed , if exporters cannot compete without subsidies and preferential treatment, they should get out of the business and leave it to efficient producers.
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KU Nov 03, 2023 12:13pm
On the contrary, SOEs are bread and butter for the servants of our ruling elite. To them, it is an opportunity to make wealth as well as alms distributing enterprises to everyone who supported the Raj.
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