The IMF funding is crucial for the $350-billion economy facing a balance-of-payments crisis with foreign exchange reserves.
‘Good news today’: Ishaq Dar says Pakistan-IMF talks ‘on track’. Finance Minister Ishaq Dar Thursday said that talks with the International Monetary Fund (IMF) are “on track” and the government will share “good news” in this regard today.
The finance minister made these comments in a media talk in Islamabad amid hopes that the two sides will reach a deal after “tough” talks.
The IMF mission has been in Islamabad since January 31 to sort out the differences over fiscal policy that has stalled the release of more than $1 billion from $6.5 billion bailout package signed in 2019.
The IMF funding is crucial for the $350-billion economy facing a balance-of-payments crisis with foreign exchange reserves dipping to less than three weeks of import cover.
While speaking to the media on Thursday after addressing a road safety conference in Islamabad, the finance minister said, “I am going to meet the IMF mission. The final round of talks with the Fund is currently underway.”
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“Talks are on track and we will share good news today. There are no differences with the IMF team,” he said.
On Wednesday, IMF Mission Chief Nathan Porter held a one-on-one meeting with Ishaq Dar at the PM House.
According to a finance ministry statement issued late in the evening, talks with the IMF continued on Wednesday and focused on the fiscal table, financing, etc.
“There is a broad consensus on the reform actions and measures. The mission chief also called on the finance minister and briefed him about the talks,” the statement said adding that the IMF mission was working on putting it all together and would finalise the draft Memorandum of Financial and Economic Policies (MEFP).
The Shehbaz Sharif-led government is in a Catch-22 situation due to tough conditions set by the lender and the political cost of these measures in an election year.
Prime Minister Shehbaz — while addressing the Azad Jammu and Kashmir Legislative Assembly in Muzaffarabad on Sunday — said that the “country is facing substantial financial challenges”, with the IMF “combing every book” and reviewing “everything” and “every subsidy” during the ongoing negotiations.
Keeping the last reviews in view, both sides took much time for striking a staff-level agreement even after getting the draft MEFP document and nine tables. But, according to the Pakistani authorities, now the IMF mission had changed its working style — they will finalise the agreement first and then share the MEFP.
According to media reports, if consensus cannot be developed today, the IMF mission might extend its stay or announce continuing parleys through online meetings from Washington DC.
