The International Monetary Fund (IMF) to hold a new round of talks with the economic leadership of Pakistan starting from today for the disbursement of the third tranche of around $450 million under the scheme of previous $6 billion Funding in May 2109.
According to the details, the IMF will review the economic performance from October to December in FY2020. The review is critical in order to decide for the next grants to Pakistan. The global money lender and the economic watchdog will also take the performance of various ministries and government departments including taxation, energy, oil & gas and others.
The IMF delegation will specifically meet the top echelons of FBR Chairman Shabbar Zaidi and finance advisor Dr. Abdul Hafeez Sheikh.
Pakistan has already received the second tranche of $454 million from IMF ending December, the IMF remarked Pakistan’s economy is on track at that time. The total amount IMF granted to Pakistan during the current government reaches $1440 million, earlier review by IMF suggested that government devised policies to streamline economic growth actually helped the country to stay on the right track.
In a press release, “IMF’s First Deputy Managing Director and Acting Chair David Lipton said: “Strong ownership and steadfast reform implementation are critical to entrench macroeconomic stability and support robust and balanced growth.”
Lipton has put more emphasis on tax reforms, improving tax revenue and elimination of tax exemptions, he said the policies regarding these key areas must be implemented early in order to ensure fiscal adjustments. He also argued that the market-determined exchange rate remains an essential part to provide the economy with stability and shockproof from external jolts.
Lipton had also emphasized “faster progress to improve the AML/CFT framework supported by technical assistance from the IMF and other capacity development providers” in order for Pakistan to be removed from FATF’s grey list.
According to the terms, the government is obliged to appraise the parliament making an account of its income, expenditure, and savings by the end of February. The government has to introduce state bank’s sovereignty bill in the parliament by the end of March. The bill will put a restriction on the government from printing new currency notes in order to overcome the fiscal deficit. The government will also implement two major decisions of FATF, the banks will strictly monitor transactions of their customers and the bank’s privacy/secrecy rules will not be applicable to implementing agencies.