Reserve won't acknowledge provides details regarding SOEs in light of old measurements
Monday, November 06, 2023
The Central Monitoring Unit team requested a report.
The fund says it will not accept reports based on old statistics.
IMF monitoring mission visiting Pakistan from 13 to 16 November.
ISLAMABAD: The Ministry of Finance has been asked by the International Monetary Fund (IMF) to submit a fresh report on losses incurred by state-owned enterprises, Geo News reported on Monday from sources.
The fund's mission, which is currently in Pakistan to review the country's loan tranche, said it would not accept reports based on old statistics, sources said.
It therefore asked the Central Monitoring Unit team to submit its first updated assessment report for the first quarter of the current financial year.
An IMF monitoring mission is currently in Pakistan to complete the first review of the $3 billion loan program and the possibility of releasing a second tranche of $700 million by the end of December 2023. This tranche would go through if the two sides are able to reach an agreement . agreement at staff level at the end of the meeting.
Pakistan and IMF teams are currently holding technical-level talks, while political-level talks will take place next week from November 13 to 16.
The finance ministry, on the other hand, has asked the IMF for time to submit a report by December 2023, the sources added.
In its reply to the fund delegation, the team said government-owned enterprises are currently under scrutiny and a new statistical report will be completed soon, sources said.
Pakistan's Fiscal Framework IMF Focus
Earlier today, The News reported that the IMF mission visit is focusing on Pakistan's fiscal framework for the ongoing financial year 2023-2024 to turn the primary deficit into a surplus under the $3 billion Contingency Arrangement (SBA).
The IMF is not concerned about the overall widening fiscal deficit due to the escalating debt service of Rs 1 trillion in the current fiscal year. The government plans to keep the lid on the debt service bill up to Rs7.3 trillion, but the IMF predicts it could rise to as much as Rs8.3 trillion by the end of June 2024.
Primary surplus means that the deficit would be calculated without debt service in the form of principal requirement and mark-up on domestic and foreign loans.
