The first biannual performance review of the ongoing International Monetary Fund’s (IMF) $7 billion Extended Fund Facility (EFF) was concluded smoothly on a “positive note”, with no signs of any major hiccups during the discussions.

The end of the mission statement issued by the Fund late on March 14 shows that the discussions were successful, as predicted by most analysts, in spite of delays in the implementation of programme goals in certain areas and missed tax revenue targets, with Pakistani authorities hoping to receive the next $1bn tranche early next month.

“The IMF and the Pakistani authorities made significant progress towards reaching a Staff Level Agreement (SLA) on the first review under the 37-month extended arrangement under the EFF,” a statement from the team leader Nathan Porter said.

“Programme implementation has been strong, and the discussions have made considerable progress in several areas, including the planned fiscal consolidation to durably reduce public debt, maintenance of sufficiently tight monetary policy to maintain low inflation, acceleration of cost-reducing reforms to improve energy sector viability, and implementation of Pakistan’s structural reform agenda to accelerate growth, while strengthening social protection and rebuilding health and education spending,” he said.

State Bank displays caution as foreign economic stimuli, domestic political challenges, and the IMF’s budget interventions may impact present stability

The IMF team was here from Feb 24 to March 14 to scrutinise progress on its 25th bailout facility and on a possible new arrangement under the Fund’s Resilience and Sustainability Facility (RSF).

On RSF........

© Dawn Business