International Monetary Fund (IMF) Resident Representative for Pakistan Esther Perez Ruiz said on Wednesday that discussions between Islamabad and the international moneylender on the ninth review of $7bn Extended Fund Facility had been “productive” so far.
Pakistan entered a $6bn IMF programme in 2019, which was increased to $7bn earlier this year. The programme’s ninth review is currently pending with remote talks being held between IMF officials and the government for the release of $1.18bn.
“Discussions to date in the context of the 9th review have been productive, and have enabled a revision to the macroeconomic outlook post floods as well as an in-depth evaluation of fiscal, monetary, exchange rate, and energy policies adopted since the completion of the combined seventh and eight reviews,” Ruiz told Dawn.com.
She added that the IMF “looks forward to continue the dialogue over policies that adequately address the humanitarian and rehabilitation needs from the floods while also preserving fiscal and external sustainability given available financing”.
Earlier, Dawn reported that Pakistan and IMF had had a round of engagement on November 18 but could not finalise a schedule for formal talks on the overdue ninth review.
The talks, originally due in the last week of October, were rescheduled to Nov 3 and then kept on facing delays following gaps in estimates by the two sides.
Earlier this month, Finance Minister Ishaq Dar’s interview on a private television channel raised eyebrows when he said he was not concerned whether the IMF team arrived in Pakistan for the ninth review, indicating that there may be an impasse in the ongoing talks.
Appearing on Geo News, the finance minister was questioned about the delayed arrival of the IMF team to which he said: “I don’t care if they come. I don’t have to plead before them. I have to look at Pakistan’s matters.”
A report last month said Pakistan was behind on multiple performance criteria essential for the completion of the review, with authorities hinting they had asked for some waivers from the financial institution.
For its part, the IMF said in a statement that Pakistan’s “timely finalisation” of a recovery plan from floods was essential to support discussions and continued financial support.
