FM Dar, SBP governor to meet IMF, WB next week

October 6, 2022 (MLN): Finance Minister Ishaq Dar and State Bank of Pakistan (SBP) Governor Jameel Ahmed are expected to meet the International Monetary Fund (IMF) and World Bank (WB) officials to share the impact of floods on the economy.

The economic team will discuss the way forward for the economy especially in the context of devastation caused by the floods and suggest changes in the IMF’s External Fund Facility (EFF) commitments.

To note, FM Ishaq Dar after taking office had hinted at renegotiating some of the terms agreed by his predecessor Miftah Ismail with the IMF. He had said that the conditionalities attached with the programme were harsh on the common people and needed some tweaks especially after the floods.

FM Dar also reduced petroleum levy – a key condition by the IMF – to revive the long-stalled EFF, citing its impact of the CPI inflation.

Former FM Miftah criticized his own party member Ishaq Dar’s move and said that the move will not sit well with the IMF.

Beyond the levy, FM Dar has allegedly intervened in the foreign exchange markets to contain the rupee’s slide – a move that is also very unpopular with the IMF.

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