Government, IMF to resume talks for sixth tranche by September end

Pakistan and the International Monetary Fund (IMF) will start staff-level discussions for the release of sixth tranche under the $6 billion Extended Fund Facility (EFF) on September 29.

Read: Pakistan to receive USD 2.77 billion from IMF in COVID-related support

Federal Minister for Finance, Shaukat Tarin, will be in Washington for discussions with top IMF officials from Oct 15 to Oct 17, which is the last day of Tarin’s tenure as federal finance minister as a non-elected person who was appointed by the premier under Article 91(9) of the Constitution.

According to the report, a list of issues to be discussed was received from the fund whereas the final approval will be made in Washington by middle of next month.

On June 24, IMF spokesman Gerry Rice had declined to say if disbursements under that programme had been halted but said further discussions were needed about Pakistan’s fiscal spending plans, structural reforms, particularly in the tax and energy sectors, and social spending.

Read: Pakistan to receive USD 2.8 billion from IMF under new SDRs

The IEO has released its report “Growth and adjustment in IMF-supported programmes”, which assesses how well IMF-supported programmes have helped to sustain economic growth, while delivering adjustment needed for external viability.

The report noted that in Jordan, Pakistan, and Tunisia, Fund staff underestimated the complexity of the political transition and the impact of intervening political, security-related and regional shocks.

It stated that several case studies emphasize that staff had unrealistic expectations regarding the feasibility and growth payoffs of reforms.

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