ISLAMABAD: The confirmation of financial support from Saudi Arabia and the United Arab Emirates (UAE) will lead to the signing of the staff level agreement (SLA) between Pakistan and the International Monetary Fund (IMF), sources said.
Sources told that the IMF was awaiting the support confirmation from two countries.
Finance and Revenue Minister Ishaq Dar also informed diplomats during an Iftar dinner in the federal capital on Sunday that the issues with the IMF would be settled soon.
The agreement has yet to be inked between the two sides despite passing of almost 46 days since the IMF and Pakistan concluded review talks in the federal capital on Feb 9. On Feb 10, the minister claimed the virtual talks had begun and the staff-level agreement would be signed within a few days.
The global lender has already expressed ignorance about the government’s announcement of providing subsidised fuel to the poor.
Bureaucratic circles have also conveyed to the government that such pro-poor schemes cannot be implemented in view of the IMF’s known opposition to subsidies.
Sources said Pakistan had to receive $1.3bn tranche under the $6.7 billion bailout package of the Extended Fund Facility of the IMF programme. The 10th review was due on Feb 3 this year, while the 11th review will be due on May 3.
On March 10, Finance Minister Ishaq Dar had = said a delay in the International Monetary Fund (IMF) programme in the tenure of previous government created a ‘trust deficit’ that is continuing to impact.
He said the PTI government failed to fulfill IMF commitments.
However, Dar said the incumbent government was trying its best to put the economy back on track and complete the IMF programme at any cost.
Talking to reporters in the federal capital, Dar said Pakistan was expected to sign staff level agreement with the International Monetary Fund (IMF) in coming two days.
Earlier addressing a seminar on “Reviving economic stability through strengthening of Public Financial Management” in Islamabad, the minister expressed the hope that Pakistan would sign staff level agreement with the global lender in coming days.
Dar said in past only PML-N government completed IMF program successfully. He said process of preparing economic and fiscal frameworks for fiscal year 2023-24 will start very soon.
Ishaq Dar said given the challenges presented by the current economic situation the upcoming budget will be a step in taking the country out of the economic quagmire.
