ISLAMABAD: Finance Minister Ishaq Dar Saturday announced the postponement of his visit to the US to attend the International Monetary Fund (IMF) and World Bank spring meetings while citing the prevailing political situation in the country.
“Pakistan is a member of the IMF and not a beggar,” Dar said in a fiery speech addressing rumours that he decided to postpone his trip due to resistance from the Washington-based lender.
He emphasised that the IMF “cannot stop me from attending the spring meetings”.
Ishaq Dar will not attend IMF-World Bank spring meetings: report
Dar was expected to attend the spring meetings of the World Bank-IMF that were taking place from April 10 to 16 in Washington.
He was also scheduled to meet the IMF management for holding talks regarding the removal of bottlenecks for the revival of the derailed $6.5 billion programme.
“Confusion has been created about my attending the IMF meeting. There are speculations about my participation in the IMF session, schedule of which issued several weeks before these meetings,” Ishaq Dar said.
“I had to leave for United States on April 10 to attend spring sessions of the World Bank and the IMF,” the finance minister said.
“A constitutional crisis has been created. The court has ordered the government to release 21 billion rupees for holding elections in Punjab,” he said.
“The federal government has been asked to release the amount to the election commission by April 10,” he said.
“The finance ministry has crucial responsibility with regard to the amount.
It is being said that the IMF has prevented me from attending the meeting. It could not do so, Pakistan has been a member of the World Bank and not a beggar,” the finance minister said.
“How the IMF or World Bank could prevent me from the US visit,” he questioned. “I will remain present online in the spring meeting,” he further said.
“The Ministry of Finance has a huge responsibility regarding the disbursement of funds to the Election Commission of Pakistan (ECP) in light of the Supreme Court’s April 4 ruling.
Earlier this week, the apex court declared the ECP’s decision on the Punjab and Khyber Pakhtunkhwa (KP) election null and void, ordering to hold snap polls in Punjab on May 14.
He said that the Supreme Court has ordered for the federal government to give Rs21 billion for elections in Punjab by April 10. “Of course, the finance ministry and the cabinet have an important responsibility in this regard, and I’m a part of it,” he said.
“Due to these circumstances and on the prime minister’s directives, I have dropped my plan to visit Washington [physically]. This is not an unusual thing. Virtual meetings took place during COVID. I will be attending the World Bank, and IMF meetings that I’m required in from Islamabad.”
The minister said that even though he would not be attending the meetings in person, a delegation representing Pakistan, which comprises State Bank of Pakistan Governor Jameel Ahmad, Finance Secretary Hamed Yaqoob Sheikh and Economic Affairs Secretary Kazim Niaz, will be there.
Addressing concerns regarding the delay in the staff-level agreement with the IMF, the finance minister said that everything required from Pakistan to conclude the much-delayed ninth review was “now complete”.
Dar, however, added that the one final thing needed was a confirmation of a $1 billion commitment from a friendly country.
Dar said that the government had already done all that was required from it to conclude the ninth review. He said that at the time of the seventh and eighth reviews, two friendly countries had informed the IMF in writing about its offer to help Pakistan with its external account.
“The two-month delay from mid-February was due to this reason,” he said. “In the past two weeks, one of our friendly countries has again given them (the IMF) the confirmation [of its commitment to help Pakistan] with $2 billion.
“We are now only awaiting the confirmation of a $1 billion commitment from one friendly country. After that, all their requirements to conclude the staff-level agreement will be complete. Following that, it takes two more weeks to take the matter into the board meeting.”
The finance minister also spoke about the speculation that the petrol subsidy announcement irked the Fund officials, causing further delay. “We also had several rounds of communication with the IMF. As soon as that news broke they asked us ‘What are you trying to do?’ We gave them a satisfying answer.”
He further said Pakistan has timely paid its loans. We have repaid 11 billion dollars, Finance Minister Ishaq Dar stated on Saturday. “We will pay each foreign payment in time,” the federal minister said.
“A strange mentality wants to see Pakistan in default, but those want the country in default have been proved wrong continuously for last several months,” he said.
“Pakistan has paid back one billion dollars of bonds in time,” he said.
“Previous government has gifted the country this financial and economic crisis,” he said.
Copyright Business Recorder, 2023