ISLAMABAD: Finance Minister Ishaq has left for Dubai to lead Pakistani team in the ongoing consultation with the International Monetary Fund (IMF) under article –IV. Both parties started consultations under article IV from Tuesday last.
Pakistani team comprises representatives from the Ministry of Finance, Federal Board of Revenue (FBR), Ministry of Commerce (MoC), Ministry of Food and National Security, Ministry of Petroleum and Natural Resources, Pakistan Bureau of Statistics (PBS) and a few others.
Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country’s economic developments and policies.
On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board. On the conclusion of the discussion, the Managing Director, as Chairman of the Board, summarizes the views of Executive Directors, and this summary is transmitted to the country’s authorities.
At the level of preliminary phase of discussions, Secretary Finance Tariq Bajwa has been heading the Pakistani delegation in the talks. From today (Saturday) to the conclusion of consultations, Finance Minister will head the talks.
On his arrival in Dubai, Finance Minister was given a detailed briefing, by senior members of the Pakistan delegation, on proceedings of the first round of talks spanning over 3 days since March 28. The Minister later also had interaction with Pakistan media based in Dubai.
It may be mentioned that during the consultations that may continue till April 5, a detailed review of reforms carried out by Pakistan in different areas of the economy, particularly the energy sector, would be undertaken.
Although Pakistan last September completed the 12th and final review with IMF under EFF programme that spanned 36 months, its engagement with IMF through policy dialogue in the context of regular consultations and post-programme monitoring is continuing.
Pakistan entered into an extended fund facility (EFF) program with IMF on September 4, 2013. It is a 36-month extended arrangement under the Extended Fund Facility (EFF) for $6.64 billion. First tranche of $544.5 million became available on September 6 2013, and the remainder evenly phased thereafter subject to quarterly reviews.
“An EFF with IMF provides assistance in support of comprehensive programs that include policies of the scope and character required to correct structural imbalances over an extended period. It has a comparatively longer repayment period of 4½–10 years, with repayments in twelve equal semiannual installments” the source maintained.
Moreover, after the conclusion of talks, in the light of IMF’s assessment about Pakistani economic profile, the Finance Ministry would follow the guidelines agreed with the IMF in the consultations. In this regard, the Finance Ministry will accommodate the recommendations of IMF in the budgetary proposals for the fiscal year 2017-18.
It has also been a normal practice that both Finance Minister Dar along with IMF Mission Chief to Pakistan Harald Finger will announce the successful conclusion of consultation through a joint press conference.
