ISLAMABAD: A team from the International Monetary Fund (IMF) returned to Washington on Friday, without signing any staff-level agreements with Pakistan for a new bailout program, indicating that it will consider signing the deal after an evaluation of Islamabad’s implementation of stringent conditions stated by the IMF.
Pakistan Prime Minister Shehbaz Sharif and his team had assured the IMF mission that they would meet all its conditions and were expecting to reach a staff-level agreement during this visit by the IMF team.The IMF mission however said it would decide whether or not to give Pakistan a bailout after approval of country’s budget by parliament.
According to media reports, it is likely that the purpose of the IMF visit was to assess Pakistan’s budget preparations as well as ascertain if its next fiscal year economic framework met overall goals to ensure fiscal and external sector sustainability.
Official sources said Pakistani authorities were greatly put to task by the global lender on energy, monetary and taxation policies. However, putting into effect all these conditions will be a big challenge for Pakistanis because experts believe that some carry heavy bilateral implications.
“Staff will prepare a report based on preliminary findings from this mission which subject to management approval will be presented to IMF’s executive board for discussion and decision,” said Nathan Porter, chief of mission at the IMF before leaving Islamabad.
Porter added that in order for inflation rates in Pakistan remaining low and stable there should be appropriate monetary and exchange rate policies; through state-owned enterprise (SOE) restructuring-populous improving public service delivery; promote private sector development through securing level playing field for investment along with good governance.
The IMF mission had landed quietly in Pakistan on 10th May where they held meetings with Pakistani authorities among other key stakeholders including US Ambassador Donald Blome who is currently representative in Islamabad.
Incumbent govt of Pakistan is trying hard to maintain economic stability but rising political temperatures are making it extremely difficult. The idea was to conclude the extended fund facility programme as soon as possible.
