Undertaking reforms: Former IMF director to be appointed consultant

Khan will prepare recommendations for entering new loan programme.


Irshad Ansari October 18, 2011

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 19th, 2011.

COMMENTS (6)

Moise | 10 years ago | Reply

@Khurram Mohiuddin: Amazing examples Brazil, India and unknown many other countries.

Lets start with Brazil: 'As it is the $41.5 billion of foreign currency that the IMF marshalled to back Brazil's currency, was doomed to end up with the speculators, leaving Brazil with its foreign currency debt increased by that amount. So often has this scenario been played out (...) [with] other currencies kept at artificial heights with interest rates, that by now the ploy should be known to schoolboys. The government whose currency is attacked draws on foreign loans arranged by the IMF, and turns over the foreign currency to buy back its own paper. The "assisted" country ends up with the foreign debt to the amount of the "aid" while the speculators pocket the proceeds of the loans, and move on to the next replay of the scam.' - Wall Street Journal, op cit. Read The Brazilian financial scam online.

Moving on to India: India's minister of finance reports to IMF not parliament http://www.jstor.org/pss/4399453

Dr Pervez Tahir | 10 years ago | Reply

@Meekal Ahmed: Everyone now knows what needs to be done. No one, however, seems to know how. The "outsiders" have an additional handicap; it takes some time to to come to grips with the idiosyncracies of our political sociology. In any case, good economic policy does not necessarily require good economists.

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