Islamabad: The Ministry of Finance has confirmed that negotiations between Pakistan and the International Monetary Fund for the ninth loan program of $1.10 billion have ended, during which a staff-level agreement could not be reached and the IMF has asked for more time. .
According to the sources, the head of the IMF’s review mission had a meeting with Prime Minister Shehbaz Sharif through video link in which matters were discussed and Shahbaz Sharif approved the matters.
Announcement of the Ministry of Finance
According to a statement issued by the Ministry of Finance, talks between Pakistan and the IMF have ended, and a staff-level agreement with the review mission could not be reached, which will take place after Washington’s approval. According to the announcement, the IMF delegation will leave in the morning, the IMF has handed over the IMFP to Pakistan.
According to the declaration, some issues between Pakistan and the IMF are pending settlement, which will be decided with the approval of Washington.
Sources in the finance ministry said the IMF mission has sought more time for the staff-level agreement, which will be approved by the board of the International Monetary Fund. Finance Secretary Hamid Yaqoob Sheikh said that the decision on the settlement points will be made in Washington, IMF has also confirmed by meeting the ambassadors for foreign financing.
According to a Finance Ministry statement, the IMF’s review mission has sought time for the staff-level agreement subject to Washington’s approval. After Washington’s declaration, Ishaq Dar will announce the success of the negotiations in a press conference.
According to sources, Pakistan will request the IMF to convene a board meeting soon. After the completion of the ninth economic review with the IMF review mission, the IMF board will approve the release of the tranche, after which Pakistan will receive a $10 billion loan. The next installment of the million dollar loan will be approved.
Also read: Government’s assurance to the IMF of Rs 300 billion in new taxes
According to the sources, the IMF clarified on Pakistan and suggested that if reforms are not done in the power sector, the country will sink, electricity distribution companies will have to be privatized, only IESCO, Fesco and LESCO are performing well and there are line losses. are less
Also Read: Agreement between Pakistan and IMF on additional revenue
Speaking after the talks, Finance Minister Ishaq Dar said that he will give good news, the talks with the IMF mission are on track, we have no disagreement with them.
It should be noted that a day ago Finance Minister Ishaq Dar had a meeting with the head of the IMF review mission team in which both sides agreed to increase revenue. After the meeting, Prime Minister Shehbaz Sharif also approved the amendment finance bill in principle.
Besides, Pakistan has assured the IMF to fulfill the set targets. In this regard, it was reported that Pakistan agreed to reduce the development budget by 350 billion, while also agreeing to create a new tax rate and monitoring system and a new mechanism for taking and repaying loans from banks in rupees.
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