ISLAMABAD: The Ministry of Finance on Saturday said that Pakistan has accepted most of the International Monetary Fund’s (IMF) new conditions and any reports that talks have failed are ‘premature’ at this stage.
Finance Ministry Spokesperson Muzzammil Aslam said Pakistan will have to ensure the implementation of a privatization programme to secure the IMF loan programme.
In a statement, the spokesperson said dialogue with the IMF team is still underway, adding that a formal announcement on it will be issued as soon as talks conclude.
He said Pakistan will have to comply with the IMF’s new conditions if it wanted the loan programme to be restored.
“The IMF suggested that we review our economic targets and comply with conditions related to the power sector reforms,” he added.
The government will have to take measures to increase tax revenue, he said, adding that the IMF has rejected the ministry’s plan and imposed conditions that would see an increase in interest rates and fixing the market rate of the dollar.
The IMF board will make the final announcement regarding the loan program, added the spokesperson.
The statement came after a report published in daily The News on Saturday had suggested that Pakistan and the IMF had failed to finalise the Memorandum of Economic and Financial Policies (MEFP) that would have concluded the Sixth Review under a $6 billion Extended Fund Facility (EFF).
The government had found itself in a very tough situation with respect to the international money lender’s demands. There are risks attached for Pakistan either with or without the IMF loans.
For one, the State Bank of Pakistan’s foreign currency reserves have decreased by $1.6 billion in the last two weeks as Pakistan paid back $1 billion on the maturity of an international sukuk bond.
