ISLAMABAD: The International Monetary Fund has decided to submit the results of its unscheduled visit to Pakistan to its Executive Board for a decision, citing delays in the implementation of the $7 billion programme.
In an official statement at the conclusion of its five-day visit, the IMF stated that “based on the preliminary findings of this mission, staff will prepare a report that will be submitted to the IMF Executive Board for discussion, after management approval.” And the decision.”
The challenges identified by the IMF indicate that the Fund’s three-year extended facility program faced significant obstacles shortly after its Board approved it on September 25.
An IMF team led by Mission Chief Nathan Porter visited Pakistan from November 11 to 15 to assess progress on about 40 conditions that the government had agreed to implement.
Through a press release, the IMF shared its “preliminary findings,” indicating that a detailed report will be submitted to the Executive Board for further deliberations.
The head of the mission said that Pakistan and the IMF experts “agreed on the need to continue prudent fiscal and monetary policies, mobilize revenues from untapped tax bases, while transferring more social and development responsibilities to the provinces.”
The sources revealed that the issues highlighted by Porter after the emergency visit reflect the areas in which Pakistan failed to fulfill its obligations.
In addition, structural energy reforms and constructive efforts are crucial to restore the vitality of the sector, and Pakistan must take steps to reduce state interference in the economy and enhance competition, which will help promote the development of a dynamic private sector, a press release said. Strong implementation of the program could create a more prosperous and inclusive Pakistan, and improve the living standards of all Pakistanis.
As part of IMF requirements, the National Fiscal Compact was to be signed by the federal government and the four regions by September 30. While the agreement was finalized, it excluded the transfer of the Benazir Income Support Program (BISP) to the provinces, resulting in a scaled-down version of the agreement.
The authorities’ demonstrated commitment to economic reforms supported by the 2024 Extended Fund Facility is encouraged. The EFF’s first review mission is expected to take place in the first quarter of 2025.
