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Finance Ministry says negotiations with IMF still ongoing

MM News Staff by MM News Staff
October 24, 2021
Pakistan and the IMF have failed to strike staff-level agreement. Source: FILE.

Pakistan and the IMF have failed to strike staff-level agreement. Source: FILE.

ISLAMABAD: The Finance Ministry has said that negotiations with the International Monetary Fund (IMF) are still continuing and a comprehensive statement would be issued once the talks have concluded.

Spokesperson of the Ministry of Finance, Muzammil Aslam, said spreading news about the failure of Pakistan-IMF talks is not correct. He said news being carried by the media does not represent the stance of the finance ministry.

The IMF’s country representative for Pakistan said that the Sixth Review talks with Pakistan are underway. The representative said that Pakistan’s efforts for the completion of talks are being reviewed. “The IMF is reviewing Pakistan’s economic policies and reforms,” he added. After the review, the IMF will decide whether or not to issue a $1 billion installment to Pakistan.

There was speculation that talks with IMF had remained inconclusive after Advisor to the Prime Minister on Finance Shaukat Tarin left Washington last week. The last member of the Pakistani delegation, Finance Secretary Yousaf Khan, has also left Washington without securing an arrangement for the resumption of the loan facility.

The IMF may issue a statement over the weekend or early next week explaining how the economic reform programme will be revived. Even if the talks are successful, Pakistan will face a new set of conditions from the IMF.

Earlier this week, State Bank of Pakistan (SBP) Governor Reza Baqir said Pakistan’s negotiations with the IMF are moving forward in a positive manner. Baqir’s statement came shortly after IMF Director of the Middle East and Central Asia Department Jihad Azour said that talks between Pakistan and the IMF are progressing in a “very good” manner.

Advisor to the Prime Minister on Finance Shaukat Tarin said that the impression that Pakistan’s negotiations with the International Monetary Fund (IMF) have failed is false. He said the prime minister’s advisor said Pakistan is still negotiating a deal with the IMF. “The impression that talks with the IMF have failed is false,” he said.

In May 2019, Pakistan had reached an agreement with the IMF after months of negotiations on a $6bn bailout package, called Extended Fund Facility (EFF). In January 2020, the IMF put the programme on hold after the government did not agree to increase electricity prices and impose additional taxes.

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