Miftah: Govt is committed to reviving the IMF programme

Breakthrough in Pak-IMF talks

Islamabad: Finance Minister Miftah Ismail said on Thursday that the government was committed to reviving the IMF programme and putting Pakistan back on a sustainable growth path.

In a tweet, the federal minister said that the government had had very useful and constructive discussions with the IMF team over the last week. During the talks, discussions were carried out regarding slippages in FY 22, caused in part by the fuel subsidies given in February 2022.

“We discussed targets for FY 23, where, in light of high inflation, declining forex reserves, and a large current account deficit, we would need to have a tight monetary policy and consolidate our fiscal position. Thus, the government is committed to reducing the budget deficit in FY23,” FM Miftah Ismail said.

Pak-IMF talks failed

Late on Wednesday, the International Monetary Fund (IMF) delayed the revival of the stalled $6-billion programme under the External Financing Facility (EFF) for Pakistan.

Pakistan failed to convince the IMF, as both sides could not reach a staff-level agreement despite week-long negotiations in Doha, Qatar, from May 18-25. 

In a statement, the IMF “emphasized the urgency of concrete policy actions, including in the context of removing fuel and energy subsidies.”

The mission appreciated the increase in policy rates implemented on May 23 but noted that there had been deviations from the policies agreed upon in the last review, partly reflecting the fuel and power subsidies announced by the authorities in February.

“The IMF team looks forward to continuing its dialogue and close engagement with Pakistan’s government on policies to ensure macroeconomic stability for the benefit [of] all of Pakistan’s citizens,” the statement read.

Read: Miftah rejects removal of power, fuel subsidies ahead of IMF talks

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