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ISLAMABAD: The International Monetary Fund (IMF) has asked Pakistan to implement the reforms agenda and any delay in its implementation could lead to a delay in the board meeting which will approve the release of $1.17 billion loan tranche. However, The International Monetary Fund has said they have no problem in negotiating with the caretaker government in case the current setup goes for new general elections, local media reported on Monday.
It’s worth noting that there is no restriction for IMF to talk to caretaker government, however Pakistani laws bar an interim government from signing a deal with the Fund.
The statement comes a day after the Pakistan Tehreeke-e-Insaaf (PTI) secured landslide victory in Punjab by-elections, securing 16 out 20 seats up for grab. This has changed the political situation in the country’s biggest province and likely to have consequences on the national politics.
As per details, the IMF, Pakistan should implement prioritized sections of the agreement ahead of the executive board meeting. “Any delay in implementation could result in a delay in the board meeting,” they said.
According to reports, the board will only give the approval for the release of the 7th and 8th tranche of the IMF if the pre-conditions are met.
As per the commitments made by Pakistan, the government will have to make sure the collection of petroleum development levy. The pre-conditions also include letting market forces decide petroleum prices.
The government has also agreed in the staff-level with the IMF to implement Nepra’s recommendations on fuel adjustment charges without any delay.
The International Monetary Fund (IMF) and Pakistan have reached a staff-level agreement for the release of US$1.17 billion under the combined 7th and 8th reviews of Pakistan’s Extended Fund Facility (EFF).