The International Monetary Fund (IMF) has released the calendar for its executive board meetings for August and Pakistan’s agenda is absent from the schedule.
The IMF’s executive board meeting is scheduled for August 28, which will focus on the agenda for Guinea-Bissau, including the approval of its sixth review. Despite expectations that Pakistan would receive approval for a new loan programme this month, the country’s agenda is currently not included in the Fund’s calendar.
Federal Finance Minister Muhammad Aurangzeb has previously expressed optimism about obtaining approval in August. But economic experts suggest that additional items can be added to the agenda during the meeting.
Last month, the IMF and Pakistan reached a staff level agreement (SLA) for a $7 billion, 37-month loan programme.
Faced with chronic mismanagement, Pakistan’s economy has found itself on the brink, challenged by the Covid-19 pandemic, the effects of the war in Ukraine and supply difficulties that fuelled inflation, as well as record flooding that affected a third of the country in 2022.
With its foreign currency reserves dwindling, Pakistan found itself in a debt crisis and was forced to turn to the IMF, obtaining its first emergency loan in the summer of 2023.
The latest bailout, coming to Pakistan in the form of loans, follows a commitment by the government to implement reforms, including a major effort to broaden the country’s tax base.
According to the statement, Pakistan will be receiving the money in the next three years if it lives up to the promises the current government has made with the Fund. These include measures to tax everyone in the county and privatise the state’s own organisations.
Additionally, Pakistan will be required to secure more loans from its friends, namely China, Saudi Arabia, and the UAE.
Also, read this
Govt will approach IMF after one year if expenses aren’t cut, says Kaiser Bengali
Earlier this month, Aurangzeb told reporters that Pakistan secured commitments from China, Saudi Arabia and the United Arab Emirates to roll over debt for a year.
The volume of rollovers would be the same as last year, he said and added that the country has $12 billion in bilateral loans that have been extended for the past few years.
On Monday, Dawn reported that the Fund might seek detailed explanations from the Punjab government about the finances allocated or arranged for the Rs14 per unit (including taxes) for electricity consumers using 201 to 500 units per month.
Before this, Prime Minister Shehbaz Sharif announced a three-month relief for protected consumers amid exorbitant electricity bills.
