Lender\u2019s country rep says \u2018they were not consulted\u2019 on planned petrol subsidy
\n ISLAMABAD
\nThe International Monetary Fund (IMF) said Pakistan has made \u201csubstantial progress\u201d toward meeting policy commitments needed to unlock billions of dollars in loans the country needs to avoid a default but \u201cfew remaining points are yet to be finalized\u201d, Bloomberg.com reported Tuesday.
\nPakistan has taken tough measures including increasing taxes and energy prices, and allowing its currency to weaken to restart a $6.5 billion IMF loan package. The funds will offer some relief to a country still reeling from last year\u2019s devastating floods and help pull the economy out of a crisis ahead of elections this year.
\n\u201cA staff-level agreement will follow once the few remaining points are closed,\u201d said Esther Perez Ruiz, the IMF\u2019s resident representative for Pakistan, adding \u201cEnsuring there is sufficient financing to support the authorities in the implementation of their policy agenda is the paramount priority.\u201d
\nFinance Minister Ishaq Dar said last week that the IMF wanted to see countries finalize commitments they\u2019ve made to help Pakistan shore up its funds before signing off on the bailout package. Pakistan needs to repay about $3 billion of debt by June, while $4 billion is expected to be rolled over.
\nIn a statement, Ruiz said the lender wasn\u2019t consulted on the government\u2019s plan to raise fuel prices for wealthier motorists to finance a subsidy for lower-income people. IMF staff are seeking more information about the scheme\u2019s operations, costs, targeting, fraud and abuse protection, and offsetting measures.
\n\u201cFund staff are seeking greater details on the scheme in terms of its operation, cost, targeting, protections against fraud and abuse, and offsetting measures, and will carefully discuss these elements with the authorities,\u201d she said while talking to Bloomberg.
\nEsther Perez said that significant progress has been made in discussions with Pakistan toward policies that related to the ninth Extended Fund Facility (EFF). \u201cFund staff are seeking greater details on the scheme in terms of its operation, cost, targeting, protections against fraud and abuse, and offsetting measures, and will carefully discuss these elements with the authorities,\u201d she said.
\nThe IMF spokeswoman said that the discussions about the policies with the Pakistani authorities recently are fruitful, adding that the secure funding to support the implementation of the policy agenda is a top priority. \u201cThere will be a staff level agreement after some remaining points are met,\u201d Parez said.
\nEsther Perez Ruiz said that Pakistan has made a lot of progress in fulfilling the commitments made with the IMF. EFF is a financial arrangement between the IMF and a member country, providing economic support and policy guidance over an extended period. The ninth EFF review for Pakistan is of particular significance as it will determine the release of the next tranche of funding.
\nEarlier in the day, the IMF has raised reservations on the petrol subsidy scheme announced by Prime Minister Shehbaz Sharif. International Monetary Fund (IMF) resident representative Esther P\u00e9rez Ruiz has the government of Pakistan has not consulted with the fund on the petrol subsidy scheme.
\n\u201cThe IMF is seeking more details about the scheme from Pakistan.\u201d Esther P\u00e9rez Ruiz said the IMF has already rejected unfunded and untargeted subsidies. The IMF official said Pakistan has made much progress in the revival of the stalled loan programme. Ruiz emphasized that securing adequate financing to support Pakistan\u2019s policy agenda was the top priority.<\/p>\n","protected":false},"excerpt":{"rendered":"
Lender\u2019s country rep says \u2018they were not consulted\u2019 on planned petrol subsidy ISLAMABAD The International Monetary Fund (IMF) said Pakistan has made \u201csubstantial progress\u201d toward meeting policy commitments needed to unlock billions of dollars in loans the country needs to avoid a default but \u201cfew remaining points are yet to be finalized\u201d, Bloomberg.com reported Tuesday. […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":{"0":"post-320910","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-top-news"},"yoast_head":"\n