The International Monetary Fund (IMF) has once again refused to conduct the review of the economy under the Standby Arrangement (SBA) in Pakistan due to security concerns. In this connection, Ministry of Finance Secretary Salman Siddiqi has moved a summary to Prime Minister Yousuf Raza Gilani seeking approval of expenditures for the visit abroad by Finance Minister, Secretary Finance, FBR Chairman and Governor of the State Bank of Pakistan (SBP).
Sources told Business Recorder here on Tuesday that the meetings for the next review were scheduled to be held from November 2-12. However, they added, the IMF delegation was not willing to visit Pakistan due to security concerns. Therefore, it had been decided that Pakistan's delegation would participate in negotiations with the IMF in Dubai.
Minister of Finance Shaukat Tarin would lead a Pakistani delegation during policy meetings to be held from November 10-12. However, Governor of the State Bank of Pakistan, Salim Raza, would attend the meeting for four days from November 9-12. The Secretary Finance and FBR Chairman would attend policy and technical level meetings from November 2-12.
Pakistan entered into SBA with the IMF for the financing of US $7.6 billion in November 2008. In the last board meeting held on August 7, 2009, the IMF approved an enhanced amount of US $3.236 billion. Pakistan received the first instalment of US $3.053 billion after signing of the agreement and two subsequent instalments of US $3.326 billion each after the satisfactory completion of quarterly reviews.
According to the schedule of meetings with the IMF mission separate technical meetings would be convened on fiscal development and outlook, balance of payment developments and outlook, monetary developments and outlook, real sector development and outlook and macro framework and financial sector development and outlook for financial stability.
The implementation of the planned structural reforms would be part of these discussions with the IMF. IMF mission would meet policy makers to present initial findings and "put on table" issues that need to be discussed in policy discussions. IMF and Pakistani delegation would convene meeting on policy discussions, including tax policy of Pakistan.