Finance Minister Ishaq Dar on Saturday the government had done everything which was required from Pakistan to conclude 9th review of a $7 billion loan programme with the International Monetary Fund (IMF).
However, only confirmation of a $1 billion commitment from a friendly country was required for revival of the IMF programme, the minister said while addressing a news conference which mainly emphasized on refuting rumors circulating on different section of media regarding his visit to the Unites States for meetings of the IMF and the World Bank.
Dar said he had cancelled his visit on the directives of Prime Minister Shehbaz Sharif citing political instability at home as main reason. He clarified that there was no reality in reports stating that he was barred by the IMF official from attending the meeting.
He said the cancellation of visit of had nothing to do with future of IMF deal— a $6.5bn rescue programme agreed in 2019, of which the government has been trying to secure the final tranche of $1.1bn since February.
At the time of the seventh and eight reviews, he said two friendly countries had informed the IMF in writing about its offer to help Pakistan with its external account.
“The two-month delay from mid-February was due to this reason,” he said. “In the past two weeks, one of our friendly countries has again given them (the IMF) the confirmation [of its commitment to help Pakistan] with $2bn.
“We are now only waiting for the confirmation of a $1bn commitment from one friendly country. After that, all their requirements to conclude the staff-level agreement will be complete. Following that, it takes two more weeks to take the matter into the board meeting.”
Dar acknowledged that there was a new development with the IMF deal over the past few weeks due to the “cross subsidy” in the works regarding fuel prices.
He said that the subsidy involved charging more to the affluent and providing relief to the underprivileged, adding that it had nothing to do with the budget. “We also had several rounds of communication with the IMF. As soon as that news broke they asked us ‘What are you trying to do?’ We gave them a satisfying answer because that subsidy is not a part of the budget.”
Dar hinted that the hold-up to the ninth review had more to do with the IMF’s part than the government’s.
The finance minister said these are routine procedures.
Since there was a constitutional crises, he said “the Ministry of Finance has a huge responsibility regarding the disbursement of funds to the Election Commission of Pakistan (ECP) in light of the Supreme Court’s April 4 ruling.
Earlier this week, the apex court declared the ECP’s decision on the Punjab and Khyber Pakhtunkhwa (KP) election null and void, ordering to hold snap polls in Punjab on May 14 — a persistent demand forced by Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan after he dissolved the assemblies in both the provinces.
He said that the Supreme Court has ordered for the federal government to give $21 billion for elections in Punjab by April 10. “Of course, the finance ministry and the cabinet have an important responsibility in this regard, and I’m a part of it,” he said.
“Due to these circumstances and on the prime minister’s directives, I have dropped my plan to visit Washington [physically]. This is not an unusual thing. Virtual meetings took place during COVID. I will be attending the World Bank, and IMF meetings that I’m required in from Islamabad.”
The minister said that even though he won’t be attending the meetings in person, a delegation representing Pakistan, which comprises State Bank of Pakistan Governor Jameel Ahmad, Finance Secretary Hamed Yaqoob Sheikh and Economic Affairs Secretary Kazim Niaz, will be there.
