Minister of State for Finance Saleem Mandviwala on Wednesday indicated that Pakistan may take a fresh programme from the International Monetary Fund (IMF) but the final decision would be taken by the political leadership. Talking to media after the meeting of Senate Standing Committee on Finance, he maintained that the IMF would not have any problem in giving another programme to Pakistan.
In reply to question that the IMF conditions would be more stringent for the new programme in the light of past record, he said it would be up to the political leadership to decide about the measures to be taken to bring about reforms. He added that the political leadership has to decide when to invite IMF to Pakistan. The minister said the economic team held talks with all the donors during recent visit to Washington for talks on strategic dialogue. Sources said the government has been facing tremendous pressure on balance of payment which is rapidly dwindling as a result of due payment to the Fund for Stand-By Arrangement (SBA) and oil import.
The situation would become alarming by March next year and the economic team has been desperately looking for another bailout package to support the balance of payment position. However, this remains a big question whether the Fund would be ready to give another programme to an outgoing government or interim government despite reported claims by the high-ups of the Finance Ministry that the Fund would be ready to give another programme to Pakistan.
The minister said the new modalities about disbursement of Coalition Support Programme (CSF) would be finalised with the US by next month. He said the modalities would include channelisation of disbursement and actual billings. Mandviwala said the matter would be finalised after the new administration would take over. In reply to another question was there any need to formulate modalities for CSF as the US troops would be leaving Afghanistan next year, he said the US is going to reduce its position in Afghanistan and is not going to withdraw permanently.
Thus, they would be in need of Pakistan support and the government wanted to have a formal agreement on CSF so as to do away with the dispute over reimbursement. He said if Pakistan is going to provide any support to the US it must be in black and white unlike their verbal understanding or agreement with the Musharraf which was the bone of contention in the issue.
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