IMF mission to arrive in Pakistan by late Oct

Discussions to be held on plan to reduce expenses, suspending officer recruitment

ISLAMABAD:

A mission of the International Monetary Fund (IMF) will arrive in Pakistan in the last week of October to review the country’s economic performance in the first three months of the current fiscal year.

According to sources from the Ministry of Finance, discussions will also take place between the caretaker government and the mission regarding reforms in various sectors, including taxes and energy.

They said once the economic review is successfully completed, Pakistan will receive the next installment of $700 million from the IMF after its board's approval.

It has also been reported that a plan for expenditure reduction has been prepared, and discussions will be held on the plan to reduce expenses, including freezing allowances, pensions, and suspending officer recruitment. The government is also likely to be compelled to increase gas prices on IMF demands.

On June 29, the IMF reached a staff-level pact with Pakistan on a $3 billion stand-by arrangement, a decision long awaited by the country which was teetering on the brink of default.

The deal came hours before the current agreement with the IMF expired on June 30. Although essentially a bridge loan, it offered much respite to Pakistan, which was battling an acute balance of payments crisis and falling foreign exchange reserves.