Undertaking reforms: Former IMF director to be appointed consultant

Khan will prepare recommendations for entering new loan programme.

ISLAMABAD: The Ministry of Finance has decided in principle to appoint former director of the International Monetary Fund (IMF) Mohsin S Khan as consultant for implementing reforms required under the just concluded standby loan programme of the IMF and entering a new loan arrangement.

However, Khan’s appointment will be finalised after approval by Prime Minister Yousaf Raza Gilani.

A senior official of the finance ministry told The Express Tribune that Khan would discuss ways with the country’s economic team to meet conditions, including end of power subsidy and tax reforms, of the previous IMF programme, which ran from November 2008 to September 2011.

He will also prepare recommendations and suggest precautionary measures in order to ensure that Pakistan gets a new loan in case the IMF is approached.

According to sources, a wing has been set up in the finance ministry, headed by Mohsin S Khan, which will monitor the reforms programme, take steps to meet IMF conditions and accelerate the pace of economic development.

According to sources, the IMF had expressed its willingness to offer a new loan during sideline meetings with Finance Minister Hafeez Shaikh when he visited Washington recently for annual meetings of the World Bank and IMF. However, the IMF linked approval of the new loan to submission of a consultation report, highlighting the economic progress made by the country.

The IMF stressed that following a review of the progress report, it would be able to decide whether to issue a letter of comfort to Pakistan.

Published in The Express Tribune, October 19^th, 2011.