Staff-level agreement: Pakistan, IMF to hold virtual talks on Mar 2

Pakistan and International Monetary Fund (IMF) are expected to make progress on the revival of the loan programme as their virtual talks for staff-level agreement would be held on March 2, citing sources, ARY News reported on Tuesday.

Sources told ARY News that the virtual talks between Pakistan and IMF are expected to be held on March 2 to review the memorandum of economic and fiscal policy (MEFP) targets.

Pakistan and IMF are likely to sign a staff-level agreement on March 2 or 3. Islamabad met another condition of the IMF by summoning the meeting of the State Bank of Pakistan’s (SBP) monetary policy committee on March 2 and interest rates are expected to increase up to 2%.

READ: PM SHEHBAZ ANNOUNCES ‘INFLATION WILL INCREASE AFTER IMF AGREEMENT’

Islamabad will apprise the Fund regarding the policy rate hike and electricity surcharge. The IMF board will hold a session three or four weeks after the signing of a staff-level agreement.

Earlier in the day, it was reported that the staff-level agreement between the International Monetary Fund (IMF) and Pakistan faced a delay and is likely to be finalized in March.

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.

READ: IMF TALKS: PAKISTAN CONSENTS FURTHER TIGHTENING OF MONETARY POLICY

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 minimise the fiscal deficit.