ISLAMABAD: Talks between Pakistan and International Monetary Fund (IMF) are at stalemate with global lender pushing Islamabad on policies and reforms needed to keep bailout programme’s targets on track and complete pending ninth review, fund official told.

“Key purpose of programme reviews in Pakistan, as in all programme countries, is to evaluate both programme performance to date, as well as, forward-looking, whether programme is on track or policy measures are needed to meet programme targets, advance reform objectives and maintain macroeconomic stability going forward,” Esther Perez Ruiz, IMF’s Resident Chief in Pakistan said in a written reply. An IMF review for release of next tranche under bailout funding has been pending since September. However, Finance Minister Ishaq Dar claimed last week that Pakistan met all targets for review.

However, IMF resident Chief said discussions with Pakistani “authorities in these areas are ongoing, especially as not all end-September quantitative targets have been met”. “Significant new developments have taken place since last programme review including extraordinary floods and number of new measures and developments, which affect this year’s economic outlook,” Ruiz added. Sources, privy to talks, told that global lender has communicated to finance ministry that it requires completion of all end-quarter performance criteria and targets. With revised figure of nominal growth in range of 25 percent, tax-to-GDP ratio was bound to decline if FBR achieved its annual target of Rs 7.47 trillion for current fiscal year. Without agreement on revised figures, it would be difficult for striking an agreement between two sides.

Published in The Daily National Courier, December, 07 2022

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