Pakistan optimistic about positive outcome of IMF review

ISLAMABAD: The Ministry of Finance remains hopeful for a positive outcome of talks between Pakistan government and International Monetary Fund (IMF) regarding final review of $3 billion standby arrangement, ARY News reported on Sunday, citing sources.

Headed by Nathan Porter, the IMF’s assistant director of Central Asia and Middle East department, the mission arrived in Islamabad and held talks with finance, energy, and Federal Board of Revenue (FBR) officials.

Pakistani officials, including Finance Minister Muhammad Aurangzeb and Energy Minister Musadik Malik, apprised IMF delegation of the measures taken to implement the lender’s reforms.

The last review, if successful, will release a tranche of around $1.1 billion, the ministry had said. Islamabad had secured the last-gasped rescue package last summer to avert a sovereign default.

According to sources, the Ministry of Finance was optimistic about a positive outcome of the final review. Sources quoting the finance ministry officials claimed that the global lender has not yet imposed any new conditions under the existing programme.

The negotiations regarding the final review will end tomorrow, as per the schedule announced earlier. Talks with IMF are underway in a “constructive and positive manner”, sources added.

Pakistan has fulfilled all the important conditions regarding the final assessment, sources claimed, adding that the success is subject to the IMF’s satisfaction.

Earlier in the day, it was reported that the government of Pakistan ‘assured’ the International Monetary Fund (IMF) of expediting the privatisation programme.

According to sources within the finance ministry, the privatisation of Pakistan International Airline (PIA) is proceeding as per the plan and efforts are underway to complete the process soon.

Sources said that the federal government has also prepared a plan to privatise the power-sharing companies. The other loss-making state-owned enterprises including First Women Bank, state life insurance, Pakistan Engineering Company are also on the list.

Sources revealed yesterday that Pakistan is likely to sign the staff-level agreement with the International Monetary Fund (IMF) next week.