The International Monetary Fund (IMF) has convened meetings through June 29 without including Pakistan, as the ninth review under the Extended Fund Facility (EFF) programme has not yet been finalized.
The financial situation in Pakistan is growing increasingly precarious, with currency reserves sufficient for only about a month’s worth of imports. Pakistan had anticipated the release of $1.1 billion in funds in November. However, the IMF has stipulated certain conditions before dispensing further funds.
Sources close to the matter have revealed that an IMF meeting, crucial for releasing the $1.1 billion tranche under the pending ninth review of the EFF programme, is due before the programme’s expiration on June 30.
Despite this delay, Pakistani officials remain hopeful that the IMF will finalize the ninth review before the deadline, making it possible to call a meeting to discuss the tranche release at any moment.
In his recent phone conversation with the IMF chief, Prime Minister Shehbaz Sharif urged expedited completion of the ninth review to enable the loan disbursement.
Notably, the IMF voiced discontent with Pakistan’s newly proposed budget just last week.
IMF’s resident representative for Pakistan, Esther Perez Ruiz, stated that the ongoing policy discussions with Pakistan are critical. However, she expressed disappointment with the draft FY24 Budget for missing a chance to expand the tax base progressively. She also criticized the lengthy list of new tax expenditures for undermining the tax system’s fairness and depleting resources necessary for vulnerable beneficiaries in the Benazir Income Support Programme.
Read: Pakistan’s Finance Minister Rebuffs IMF’s Budget Criticisms
