Pakistan-IMF staff-level agreement 'delayed'

ISLAMABAD: Staff-level agreement between the International Monetary Fund (IMF) and Pakistan faces delay and is likely to be finalized in March, ARY News reported, quoting sources.

A staff-level agreement with Pakistan on the ninth review for a $6 billion loan facility that paves the way for the release of the much-awaited $1.17bn is facing delay despite Islamabad accepting the majority of IMF’s conditions.

Sources privy to the development said the staff-level agreement with the IMF is now likely to be signed in the month of March.

Pakistan has fulfilled several demands of the IMF for the revival of stalled loan program. Furthermore, the State Bank of Pakistan’s Monetary Policy Committee is also set to meet on March 2 against its scheduled meeting on March 16 to review the demand of increasing interest rate.

The IMF will be informed about the decision of the SBP, the sources said.

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.

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.