Miftah discuss pathways to complete 7th review with IMF
ISLAMABAD: The Pakistan Muslim League-Nawaz (PML-N) government has successfully negotiated with the International Monetary Fund (IMF) on Sunday and both came to the conclusion that the current program should continue. The current government and IMF also agreed that the subsidy given by the previous government on electricity and petrol would be abolished in phases. This means petrol and electricity prices will increase further.
According to sources, Finance Minister Miftah Ismail, Governor State Bank of Pakistan Raza Baqir and Minister of State for Finance Dr Ayesha Ghous Pasha met the IMF delegation in Washington. In this regard, the sources said that in the talks, Pakistan has agreed on reforms to increase revenue while the IMF has agreed to continue subsidies for the poor in Pakistan.
The IMF has no objection to the income support program and also agreed on continuation of the health card facility, sources claimed. Sources also said Pakistan has assured that efforts will be made for the independence of the SBP and this month Pakistan and the IMF technical team will work on the expansion of the program. The technical team will review the bilateral data.
The Pakistan’s delegation led by Minister for Finance Miftah Ismail on Sunday discussed pathways to complete seventh review with International Monetary Fund (IMF). The Pakistan delegation held several meetings with the IMF officials, including Deputy Managing Director Ms Antoinette Sayeh, Jihad Azour, Director MCD, and Nathan Porter, Mission Chief, said a press release issued by Ministry of Finance here.
Miftah Ismail, Finance Minister, laid out his government’s priorities and efforts to bring fiscal discipline while insulating the vulnerable from oil price volatility in the international markets.
The IMF expressed support to the Pakistan delegation. An IMF mission lead by Mission Chief Nathan Porter will visit Pakistan in May to discuss the issues around subsidies on petrol and electricity announced by the out going government.
The delegation also met Axel von Trotsenburg, Managing Director, Hartwig Schafer, Vice President and other officials of the World Bank. Progress of on-going program loans and projects as well as avenues for further assistance were discussed. Finance minister thanked the Bank officials for the financial and technical support provided by the Bank throughout. MD Operations also assured full support for Pakistan. The delegation also met Vice President IFC, Vice President MIGA and Executive Directors of the IMF.
The International Monetary Fund announced that it will be sending a mission to Pakistan in May after the global lender held “several meetings” with Finance Minister Miftah Ismail and his team in Washington. The announcement of the mission’s visit to Pakistan was made in a press release issued by the Finance Division following Ismail’s meetings with IMF officials.