IMF board to decide on Pakistan case

Mission to present findings to executive board

ISLAMABAD:

The IMF has decided to place the findings of an unplanned visit to Pakistan before the executive board for a decision after it observed that the $7 billion programme implementation was lagging behind on many counts.

In an official announcement at the end of the five-day visit to Pakistan, the IMF said that "based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF's Executive Board for discussion and decision".

The issues highlighted by the IMF in its statement suggests that the three-year Extended Fund Facility took a bumpy start soon after beginning of the journey on September 25th when the board approved the package.

Led by Mission Chief Nathan Porter, the IMF team visited Pakistan from November 11th to 15th to review implementation on about 40 conditions that the government had accepted.

The IMF shared its "preliminary findings" through the press release and stated that the detailed findings in the shape of the report would be presented before the Executive Board.

The IMF's mission chief stated that Pakistan and the IMF staff "agreed with the need to continue prudent fiscal and monetary policies, revenue mobilization from untapped tax bases, while transferring greater social and development responsibilities to provinces".

The issues that Nathan mentioned after the emergency visit are the ones where Pakistan is lagging behind the commitments, said the sources.

In order to meet the IMF's condition to sign a National Fiscal Pact by four provinces and the Centre till September 30th, the signatories agreed to a muted version that excluded transfer of Benazir Income Support Programme (BISP) to the provinces.