IMF likely to announce EFF agreement this week: Naveed Qamar

ISLAMABAD: Federal Minister for Commerce, Syed Naveed Qamar on Wednesday said that the International Monetary Fund (IMF) was likely to announce its staff level agreement on Extended Fund Facility (EFF) with Pakistan by this week, ARY News reported.

Talking to an international news outlet, the federal minister said that Pakistan has taken all the measures needed to unfreeze a $6.5 billion credit line and expects to clinch the deal ‘any day now’.

After formal announcement by the fund, Pakistan would get a $1.2 billion tranche under the Extended Fund Facility (EFF).

Naveed Qamar said that the IMF agreement would give investors and creditors confidence that “Pakistan’s economy was now stabilizing and has taken all the right steps, so in that sense their money would remain protected.

“The IMF program is the beginning, not the culmination, of all other monies flowing in” he said, adding that a pickup in imports once the nation boosts its reserves will also benefit exports.

Limited reserves restricted Pakistan’s ability to fund imports, including intermediary goods, and stranded thousands of containers of supplies at ports.

Pakistan authorities have taken steps including increasing taxes, cutting subsidies and devaluing its currency to meet IMF conditions, the Bloomberg reported.

It is pertinent to mention here that the National Assembly on Monday passed the Finance (Supplementary) Bill, 2023 aimed to amend certain laws relating to taxes and duties. The bill proposed to impose new taxes of Rs 170 billion to minimize fiscal deficit.

The International Monetary Fund (IMF) and Pakistan moved closer to the revival of $7 billion Extended Fund Facility (EFF) as the lender responded to the Memorandum of Economic and Financial Policies (MEFP) draft.

According to details, the Fund has responded to the Memorandum of Economic and Financial Policies (MEFP) draft – sent by officials of Ministry of Finance and Revenue.

Sources told ARY News that IMF and finance ministry held virtual talks today, adding that the ninth review to the revival of $7 billion Extended Fund Facility (EFF) will be completed soon.