Achi news desk-
Post views: 12
Monitoring desk
ISLAMABAD: Pakistan is in discussions with the International Monetary Fund on a possible continuation plan for its nine-month, $3 billion standby arrangement, IMF chief Kristalina Georgieva said on Thursday, adding that it has important issues to resolve.
Georgieva told an event at the Atlantic Council think tank that Pakistan is successfully completing its existing program with the International Monetary Fund and its economy is functioning slightly better, with reserves now being built up.
“There is a commitment to continue on this path, and the country is turning to the fund in order to have a follow-up plan,” Georgieva said, pointing to issues the struggling South Asian nation still needs to address.
“There are very important issues to be resolved in Pakistan: the tax base, how the wealthier part of society contributes to the economy, the way in which public expenditures are directed and, of course, creating a more transparent environment.”
Pakistan and the IMF last month reached a staff-level agreement on the second and final review of the $3 billion standby arrangement, which, if approved by the world lender’s board, would release about $1.1 billion to the struggling South Asian nation. The International Monetary Fund’s board is expected to review the issue at the end of April, but no firm date has been set, a spokesman said.
The two sides also talked about negotiating a longer-term bailout and pursuing policy reforms necessary to rein in deficits, build reserves and manage rising debt service.
Pakistan’s external financing requirements for the next fiscal year will hover over $25 billion, which the country plans to bridge with the help of all multilateral creditors and some bilateral creditors.
The Express Tribune reported Tuesday that Finance Minister Muhammad Aurangzeb will meet with Kristalina Georgieva in Washington next week, but that his interactions with US officials may remain at a junior level.
Sources told The Express Tribune that Aurangzeb was scheduled to meet with US Assistant Secretary of State for South Asia Donald Lowe – a fourth-ranking official in the US administration. The minister may also meet with the US Deputy Undersecretary of the Treasury – a third-ranking official in the US government.
