ISLAMABAD: Following delay in Staff-Level Agreement with International Monetary Fund (IMF), Pakistan decided to seek US help for revival of stalled loan programme.

Sources within Finance Ministry familiar with development said that incumbent government has decided to seek Washington’s help as majority of demands of fund have been completed. “There is no need for further delay in SLA.”

They said Finance Minister Ishaq Dar will talk with US envoy this week. It has been learnt that there are chances of staff-level agreement between Pakistan and IMF this week. Virtual talks are also scheduled today with International Monetary Fund. Sources further claimed that officials from State Bank of Pakistan and IMF had held talks on Thursday. They discussed points finalised in Memorandum of Economic and Financial Policies.

International Monetary Fund asked Pakistan to implement demands before reaching staff-level agreement for revival $ 7 billion Extended Fund Facility (EFF) stalled for months.

State Bank of Pakistan raised monetary policy rate by 300 basis points to 20 percent one of pre-conditions of International Monetary Fund.

“This decision reflects deterioration in inflation outlook and its expectations amid recent external and fiscal adjustments. MPC believes this outlook warrants strong policy response to anchor inflation expectations around medium-term target of 5-7 percent,” statement said.

Published in The Daily National Courier, March, 14 2023

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