April 25, 2022 (MLN): Based on the constructive discussions with the delegation led by Finance Minister Miftah Ismail in Washington, the International Monetary Fund (IMF) mission will visit Pakistan in May to resume discussions over policies for completing the 7th Extended Fund Facility (EFF) review.
“We had very productive meetings with the Finance Minister of Pakistan Miftah Ismail over Pakistan’s economic developments and policies under the Extended Fund Facility (EFF) program. We agreed that prompt action is needed to reverse the unfunded subsidies which have slowed discussions for the 7th review”, Mr. Nathan Porter, IMF Mission Chief for Pakistan, stated in a press release.
“ The IMF expects to field a mission to Pakistan in May to resume discussions over policies for completing the 7th EFF review. The authorities have also requested the IMF to extend the EFF arrangement through June 2023 as a signal of their commitment to address existing challenges and achieve the program objectives,” he added.
It is pertinent to note that the delegation discussed pathways to complete the seventh review. Mr. Miftah Ismail laid out his government’s priorities and efforts to bring fiscal discipline while insulating the vulnerable from oil price volatility in the international markets.
Speaking on authorites' talks with IMF, CEO Topline Securities said, “In case IMF program is extended, it will provide some confidence to investors as next year external account gap is huge.”
However, this needs the political will to implement reforms at a time when political noise is rising, he noted.
