ISLAMABAD: All eyes are now on the staff-level agreement with the International Monetary Fund (IMF) as Pakistan faces a massive exchange rate devaluation, implementation of electricity surcharge and 300 basis points a day in the policy rate. There is an increase. , JEE News reported Friday.
Senior figures in Pakistan and Washington-based lenders are finalizing the draft Memorandum of Economic and Financial Policies (MEFP) to complete the ninth review.
After the deal is signed, the lender will disburse more than $1 billion of a $6.5 billion bailout scheduled for 2019, which will serve as a lifeline for the cash-strapped nation.
Agreement on the text of the MEFP and its targets for the macroeconomic and financial framework for the remainder of the Extended Fund Facility (EFF) program by the end of June 2023 will pave the way for the implementation of the agreement.
“There is no possibility of termination of the ongoing EFF program at this stage, as the Fund staff also believes that the various stringent measures taken by the Government of Pakistan will stabilize the economy and avoid default till June 30, 2023. I will get help,” the source told JEE News.
On the IMF front, sources said the lender had informed the Pakistani side that it was not changing the goalposts. The staff just followed them. Agreed actions
Now the blame game should be abandoned forever and the two sides should move towards signing a staff-level agreement to revive the IMF program, which has been stalled since last November 2022.
“The IMF asks Pakistan to stick to a market-based exchange rate policy, eliminate the monster of revolving credit through the imposition of surcharges and tighten monetary policy,” the official said.
‘Negotiations with the IMF are about to be completed’
Meanwhile, Finance Minister Ishaq Dar tweeted on Thursday that anti-Pakistan elements were spreading malicious rumors that Pakistan might default.
“This is not only completely false but also false to the facts. Despite paying all external liabilities on time, the State Bank’s foreign exchange reserves are increasing and are almost USD 1 billion higher than four weeks ago,” he said. He tweeted.
due payments on time. Foreign commercial banks have started extending facilities to Pakistan. Our negotiations with IMF are about to conclude and we expect to sign Staff Level Agreement with IMF by next week. All economic indicators are slowly moving in the right direction. 2/2
— Ishaq Dar (@MIshaqDar50) March 2, 2023
Foreign commercial banks have started providing facilities to Pakistan. Our negotiations with the IMF are nearing completion and we expect to sign a staff-level agreement with the IMF by next week. All the economic indicators are gradually moving in the right direction.
Responding to PTI Chairman Imran Khan, Dar alleged that the former prime minister was responsible for the economic disaster.
“It was you (Imran Khan) who brought Pakistan to the brink of economic collapse and with the help of Allah saved the country from your rule. We are doing our best to correct the mistakes you made during your rule. They should be rectified. We will soon share the good news with the nation,” he added.
