ISLAMABAD: Federal Board of Revenue (FBR) Chairman Tariq Bajwa has left for Dubai to take part in the policy-level talks between Pakistan and the International Monetary Fund (IMF) starting from today (Wednesday).
Talks will continue for the next three days for 7th Review under the $6.64 billion extended fund facility (EFF) programme. The policy-level talks for the 6th Review were held in February in Dubai.
Pakistan entered into an extended fund facility (EFF) programme with the IMF on September 4, 2013. The EFF Pakistan programme is a 36-month extended arrangement for SDR 4.393 billion (US$6.64 billion).
The first tranche of SDR 360 million ($544.5 million, or 34.8 percent of quota) became available on September 6 2013, and the remainder will be evenly phased thereafter subject to quarterly reviews.
The IMF had provided almost $3.2 billion to Pakistan under existing EFF arrangement but this money was largely used for paying back the previous loans obtained by Pakistan during the tenure of the PPP government.
In the beginning of last month, the IMF set the budget 2015-16 outlook and Pakistan’s efforts for revenue generation as focal point of discussion during the forthcoming 7th Review of EFF programme, besides the work done in the energy sector.
Finance Minister Ishaq Dar, who is currently in Baku, Azerbaijan, for 48th Annual Meeting of the Asian Development Bank (ADB), will lead the Pakistani delegation in the said talks. The Pakistani delegation comprises Finance Secretary Dr Waqar Masood, State Bank of Pakistan (SBP) Governor Ashraf Mahmood Wathra and FBR Chairman Tariq Bajwa. After the successful conduct of the 7th Review, the next tranche worth $550 million will be released with the approval of the IMF’s executive board by late June or early July.
“Customs Member Nisar Muhammad Khan is already in Dubai and engaged with the IMF delegation in the ongoing phases of talks,” a well-placed source at the FBR told this scribe.
Similarly, keen interest of the IMF and the World Bank (WB) in the future plans of the Federal Board of Revenue to broaden tax net as well as to increase the volume of revenue collection forced FBR Chairman Tariq Bajwa and his team to extend their stay in the US for two more days.
The objective of the meetings is to review the progress achieved by Pakistan on economic reform agenda agreed in the EFF programme with the IMF on September 4, 2013.
