Pakistan, IMF fail to reach consensus

Pakistan and the IMF are yet to reach a consensus on a staff-level agreement, which is necessary for the completion of the second review and the components of the third tranche of $1.1 billion.

The IMF mission has extended its stay in Islamabad for another day.

The IMF is seeking high-level assurances, including from Prime Minister Shehbaz Sharif, on ongoing issues, including hike in electricity and gas prices from July 1 and changes in fuel prices, before entering into a staff-level agreement.

Provinces have agreed to generate Rs600 billion in surplus revenue, but this issue remains problematic as the MEFP is expected to undergo changes to finalize it to build consensus.

Another issue is that the IMF wants to announce the scheme for retailers but the FBR is trying to convince the visiting team that the scheme should be launched in the next budget as a lot of efforts will have to be made for this while it will not have any positive impact on the overall income.

Today, No IMF meeting is scheduled with the concerned ministries and departments, but a draft Memorandum on Monetary and Economic Policy (MEEP) will be discussed with the finance ministry and finalized.

A senior official speaking to media confirmed that the time frame does not allow the two sides to drag out the negotiations on the staff level agreement further as the standby agreement expires on April 12.