Islamabad, 30 May 2023, (GNP): Pakistan’s Finance Minister Ishaq Dar confirmed that the government is ready to share budget details with the IMF. The federal government is taking measures to expedite the release of funds by the IMF that are currently on hold.
“They have asked for some more things again, we are ready to give that too, they say that give us budget details, we will give it to them,” said Ishaq Dar during an interview.
He also stated that Pakistan has fulfilled all the conditions of IMF to clear the 9th review.
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Finance minister Dar also expressed his desire for the IMF to clear the 9th review before the forthcoming budget in early June, as all the conditions have been met.
In addition, he also stressed that combining 9th and 10th review would not work for Pakistan, adding, “We will not do it, (we) see this is (as) unfair.”
Economic setback
Ishaq Dar, also criticized the incompetency of the previous government, accusing them of the country’s economic deterioration.
Finance Minister also blamed Imran Khan’s government for record inflation, failing to abide by the IMF’s conditions.
Ishaq Dar said the IMF is delaying $1.1 billion funding part of the $6.5 billion rescue package since November. Whereas the talks between IMF and Pakistan concluded in February without the release of funds. These talks are critical to unlocking other important funding and for better bilateral relations with IMF, the finance minister stated.
Revival of stalled EEF program
Reportedly, Pakistan is battling with final efforts to revive the extended fund facility (EFF) program. Despite this, hopes are dwindling as the ongoing program of 6.5 billion dollars is expiring on June 30.
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Furthermore, the negotiations between the government and IMF for the 9th review are still going. Also, the disagreement regarding the conditions outlined by IMF for staff-level agreement (SLA) persists. Further, If government fails to reach SLA before the upcoming budget, it would jeopardize the success of the ongoing program.
Economy Revival Options
Pakistan has left with a few options to revive its economy. Among them is to immediately sign SLA program and send its request before the IMF’s Executive Board. The request aims at approving the next tranche of $1 billion and an extension in EEF program.
However, the this option involves combining the 9th and 10th reviews and sharing budget figures with IMF. “There are no easy options available; both sides will have to work out modalities for evolving consensus, but with the existing approach of maintaining status co no breakthrough can be achieved”, stated a media official.
