Caretaker govt cannot sign deal with IMF: sources

ISLAMABAD: The International Monetary Fund (IMF) has asked Pakistan to implement the reforms agenda and sources within the lender said that any delay in its implementation could lead to a delay in the board meeting which will approve the release of a $1.17 billion loan tranche, ARY NEWS reported.

According to sources within the IMF, Pakistan should implement prioritized sections of the agreement ahead of the executive board meeting. “Any delay in implementation could result in a delay in the board meeting,” they said.

The sources however denied that any country intervened in finalizing a staff-level agreement with the country and said that the Fund wants a clear policy on energy prices from Pakistan.

They lamented that the previous government did not fulfil the agreement with the lender.

“There is no restriction for IMF to talk to caretaker government however Pakistani laws bar an interim government from signing a deal with the Fund,” they said, adding that the IMF has no objection to relief being announced for underprivileged segments of the society.

Pakistan, IMF reach staff-level agreement

The International Monetary Fund (IMF) and Pakistan have reached a staff-level agreement for the release of US$1.17 billion under the combined 7th and 8th reviews of Pakistan’s Extended Fund Facility (EFF).

A statement issued by the Fund said that the agreement is subject to approval by the IMF’s Executive Board.

“Additionally, in order to support program implementation and meet the higher financing needs in FY23, as well as catalyze additional financing, the IMF Board will consider an extension of the EFF until end-June 2023 and an augmentation of access by SDR 720 million that will bring the total access under the EFF to about US$7 billion.”