Staff-level agreement: IMF, SBP governor to hold talks today

ISLAMABAD: Ahead of signing a staff-level agreement, the International Monetary Fund (IMF) and the State Bank of Pakistan (SBP) governor will hold talks today, ARY News reported on Wednesday.

Pakistan and IMF held a series of virtual talks ahead of signing the staff-level agreement for reviving the loan programme. The Fund and the SBP governor will hold separate talks today, sources said.

Sources added that the government and the Fund moved through the tough dialogues. In today’s meeting, Pakistan will apprise the Fund regarding the external funding by June 30.

READ: PAKISTAN COMPLETED IMPLEMENTATION OF IMF PRE-CONDITIONS: OFFICIALS

A final meeting is expected to be held between Pakistan and IMF officials tomorrow to discuss the procedural issues.

Senate body briefed

Earlier in the day, the Governor State Bank of Pakistan informed the Senate standing committee that the staff-level agreement will soon be inked with the IMF.

Governor central bank Jameel Ahmed attended the hearing of the Senate standing committee on finance, chaired by Senator Saleem Mandviwala.

“We have reached very near for an agreement with the International Monetary Fund (IMF),” central bank governor told the standing committee’s session. “The issues are being finalized with the IMF,” he said.

READ: GOVT HIKES GST ON MORE LUXURY ITEMS TO WOO IMF

“Pakistan’s foreign exchange reserves will reach to 4.3 billion dollars by the next weekend, while the reserves will further enhance by June 30,” Governor SBP said.

“In the last one month foreign currency reserves were enhanced by 1.5 billion dollars,” he said.

The governor briefed the senate body on the inflation, interest rate and foreign exchange reserves.

“Our government given autonomy to the State Bank but they didn’t exercise it,” Senator Mohsin Aziz said.

“The economy facing multiple external as well as internal challenges. Current Account deficit was estimated 10 billion dollars for this year. Current account deficit will remain seven bln dollars by the end of the current year,” central bank’s governor said.

“Increasing tax on luxury items to 25 pct will bring the revenue down and smuggling will be encouraged,” Senator Aziz said. “The children being used in smuggling of dollar and daily four to five million US currency being smuggled from a single border,” he added.

Governor central bank informed that the annual inflation has been estimated to remain at 26.5 percent this year.