Tuesday May 30, 2023
Board meetings usually require prior agreement with employees.
The mission chief says the engagement will focus on the federal budget.
As for the political situation, he hopes "a peaceful way forward will be found."
As speculation mounts over the International Monetary Fund (IMF) program, the lender said it was in contact with Pakistani authorities to pave the way for a board meeting before the funding program expires at the end of June, Reuters reported.
A board meeting to review the program usually requires prior agreement at the staff level — which will also release $1.1 billion in funding for the cash-strapped country as part of a $6.5 billion IMF package.
Notably, the staff-level agreement has been delayed since November, with more than 100 days since the last staff-level mission to Pakistan, the longest such delay since at least 2008.
"This engagement will focus on restoring the proper functioning of the foreign exchange market, approving the federal budget in line with program objectives and adequate financing," said the IMF's chief of mission to Pakistan, Nathan Porter.
On Sunday, Finance Minister Ishaq Dar said Pakistan would share its budget details with the fund. He added that he would like the IMF to approve its ninth review before the budget, which is due to be presented in early June, as all the conditions for this have already been met.
"Again they asked for some other things, we are ready to give that too, they say give us the budget details, we will give it to them," Dar told Geo News in an interview.
As for the next assessment, he said it would not work for Pakistan if the IMF combined the ninth and 10th assessments of the bailout program, adding: "We will not do that, we see it (as) unfair."
Porter said that broadly speaking, "overcoming the current economic and financial challenges would require sustained policy efforts and reforms to restore Pakistan to strong and inclusive private-led growth".
While the IMF does not comment on domestic politics, Porter said the fund hopes "a peaceful way forward will be found in accordance with the constitution and the rule of law," referring to Pakistan's political instability.
