IMF board to meet for Pakistan’s sixth review today

Washington: The Executive Board of the International Monetary Fund (IMF) will meet today in Washington over Pakistan’s sixth review under the Extended Fund Facility (EFF).

It had postponed its Executive Board meetings twice this month. The calendar had earlier showed that the sixth review would be held on January 28.

Pakistan has fulfilled IMF’s conditions, including the State Bank of Pakistan Amendment Bill.

The board will approve a $1 billion loan tranche for Pakistan if it finds that steps such as the passage of the mini-budget and a bill to grant more autonomy to the State Bank of Pakistan are satisfactory.

The government managed to pass the bill with a margin of one vote, rejecting the Opposition’s recommendations.

Finance Minister Shaukat Tarin has rejected the notion that the SBP bill gives absolute autonomy to the central bank. He said it only sought to “enhance its independence”.

He added that the government would appoint the board of directors that would control the central bank and its senior management.

As per the IMF conditions, the government has withdrawn tax exemptions worth Rs343 billion through the “mini-budget”.

It increased the power tariff as well as fuel prices.

In November 2021, Pakistan and the IMF reached a staff-level agreement on policies and reforms needed to complete the sixth review under the $6 billion EFF. The seventh review will be due in April 2022.

Meanwhile, the final review is expected to be done in September 2022.