ISLAMABAD - Pakistan and International Monetary Fund (IMF) entered into final round of talks in Dubai on Tuesday, as Islamabad believes to complete the first ever IMF programme.
Finance Minister Ishaq Dar arrived in Dubai to participate in the on-going negotiations with the IMF on the 12th and last review under the Fund programme.
The minister met with the IMF Mission Chief and his colleagues and received briefings from Pakistan team also.
Earlier, Finance Secretary Dr Waqar Masood led the Pakistani side in discussions that began on July 27.
The discussions concern the last (12th) review of $6.
64 billion Extended Fund Facility (EFF) arrangement.
Pakistan has completed 11 out of 12 quarterly reviews.
An official of Ministry of Finance said that the government had met all the requirements set by the Fund for the remaining tranche.
The government would receive $102 million from the Fund in September if the talks remain successful.
Pakistan, which has so far received $6.
01 billion from the IMF, has already requested the latter for a brief extension in the EFF arrangement from September 3 to September 30, 2016 to have sufficient time to hold discussions for the final review.
The IMF has set two benchmarks for Pakistan, namely to update the plan to eliminate the power sector circular debt and initiate privatisation of Kot Addu Power Company (KAPCO) by July 15 2016.
The Cabinet Committee on Privatisation has approved the offloading of government’s remaining 40.
25 percent stake in KAPCO in the stock market in order to pave the way for the last round of talks with the Fund.
The second benchmark: updating the plan to further limit the accumulation of new payables and gradually eliminate the outstanding stock of payable arrears in the power sector.
Sources said the government had also met the second benchmark.
Finance Minister expressed satisfaction over progress on the negotiations, and remarked that he was confident that the last review would be successfully concluded.
He said this would be a historic occasion, as it would be for the first time that a medium-term reforms programme, supported by IMF, would be successfully concluding at the close of its three-year term.
“The economy has undergone massive transformation during this period,” he said, and added, “The macroeconomic framework is stable because of rising growth, declining inflation, fiscal consolidation aided by rising tax collections, stable external account and higher reserves.
” Dar further said that the path to growth and stability would remain the hallmark of economic management after the conclusion of the Fund programme as per manifesto of Pakistan Muslim League-Nawaz.
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