The Minister of Finance, Muhammad Aurengzeb, has expressed optimism about the ongoing negotiations with the International Monetary Fund (IMF), stating that the conversations are in its final stages and there are no significant obstacles.
In statements to the media on Friday, the minister confirmed that Pakistan is on the way to meet the economic objectives of the IMF and assured that the discussions will soon conclude positively.
Aurengzeb emphasized Pakistan’s commitment to fiscal discipline, highlighting government adhesion to the financial framework agreed with the IMF.
The conversations focus on ensuring the next section of funds, which is crucial for the economic recovery of Pakistan.
The IMF mission head in Pakistan, Nathan Porter, also confirmed last week that significant progress had been made to reach a personnel level agreement (SLA) with respect to the first review of the loan program of $ 7 billion Pakistan.
The success of these conversations will pave the way for Pakistan to receive around $ 1 billion as part of the second delivery of the loan.
In addition, Aurengzeb addressed the challenges of climate change, emphasizing the urgent need for structured climate financing to combat environmental risks.
He recognized the growing threats raised by climate change, including the rapid fusion of glaciers and economic interruptions caused by environmental changes, particularly in Lahore.
The Minister of Finance also highlighted international promises for flood rehabilitation, although the country has fought to completely use these resources due to implementation challenges.
Earlier on Thursday, the governor of the Central Bank, Jameel Ahmad, said that there were no obstacles on the side of the State Bank of Pakistan (SBP) to reach an agreement at the personnel level with the International Monetary Fund (IMF), and any pending problem could be related to the federal government.
While talking to the media after a meeting of the Public Accounts Committee (PAC), the governor expected the personnel agreement to be contacted very soon with the IMF. However, it did not provide a firm date for the agreement, which has been delayed since March 14.
The PAC meeting also revealed that the federal government was about to grant “powers similar to the emperor” to the Minister of Federal Finance, Muhammad Aurengzeb, to approve up to five special fees for employees and officers of several government departments.
“There is no pending problem with us, and any pending problem could be by the federal government,” said Jameel Ahmad as he answered a question about the time of the personnel agreement with the IMF. The governor did not specify any particular problem, but declared that finishing issues with ministries and divisions take time.
Pakistan and the IMF held conversations from March 3 to 14, but both parties could not reach a personnel level agreement due to delays in the end of the memorandum of economic and financial policies (MEFP). After the mission returned to Washington, the Ministry of Finance celebrated at least two virtual sessions with the IMF in the presence of other interested parties.
The IMF and Pakistan are in the process of finishing the MEFP in the areas of commerce and taxes, together with the number of fiscal and circular debt. Federal authorities hope that the agreement will arrive soon. According to the IMF Board schedule, the first review of the program and the performance of December 2024 and the continuous criteria must be completed before March 15.
