According to an IMF official on Monday, the International Monetary Fund (IMF) would continue to engage Pakistan in discussions about the policies and changes required to meet the goals of the bailout program and complete the ongoing ninth review.
“A key purpose of program reviews in Pakistan, as in all program countries, is to evaluate both program performance to date, as well as, forward-looking, whether the program is on track or policy measures are needed to meet program targets, advance reform objectives, and maintain macroeconomic stability going forward,” Esther Perez Ruiz, IMF’s Resident Chief in Pakistan, said in a written reply.
The next tranche of bailout financing has been subject to an IMF review since September, despite the fact that Pakistan’s finance minister Ishaq Dar declared last week that the country had accomplished all of its goals for the 9th review.
IMF resident chief said discussions with the Pakistani “authorities in these areas are ongoing, especially as not all end-September quantitative targets have been met”.
“Significant new developments have taken place since the last program review including the extraordinary floods and a number of new measures and developments, which affect this year’s economic outlook,” Ruiz added.
According to official sources, the IMF told the finance ministry that it demanded that all end-quarter performance criteria and targets be met.
“Both sides would also require broader agreement on forward-looking data on the basis of which the performance targets and indicative targets for the remaining program period till June 2023 will be set,” they added.
Following significant flooding, all macroeconomic and fiscal frameworks were modified collectively, requiring agreement from both parties on the updated macroeconomic framework.
The growing consensus on a staff-level agreement for the conclusion of the ninth review under the $7 billion Extended Fund Facility (EFF) may be facilitated by the broader agreement on the updated macroeconomic framework.
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