ISLAMABAD: An International Monetary Fund team returned on Friday to Washington without signing a staff-level agreement with Pakistan for a new bailout programme, saying it will consider signing a deal after assessing Islamabad’s implementation of stringent conditions it has laid down.
Pakistan Prime Minister Shehbaz Sharif and his team had assured the IMF mission they would implement all its conditions and expected to ink a staff-level agreement during this visit by the IMF team.The IMF mission, however, stated it would decide on whether or not to give Pakistan a bailout after approval of the country’s budget by parliament.
Media reports suggest the IMF visit’s purpose was to gauge Pakistan’s budget preparations and see whether its next fiscal year economic framework was in line with the overall objectives of ensuring fiscal and external sector sustainability.
Official sources said the global lender gave Pakistani authorities a very hard time on energy, monetary and taxation policies. Implementation of all IMF conditions, experts believe,would put an extraordinary burden on the people, and some conditions carry implications for bilateral relations as well.
“Based on the preliminary findings of this mission, staff will prepare a report that,subject to management approval, will be presented to IMF’s executive board for discussion and decision,” said Nathan Porter, the IMF mission’s chief, ahead of leaving Islamabad.
Porter said Pakistan would have to continue progress towards low and stable inflation by appropriate monetary and exchange rate policies; improve public service provision through state-owned enterprise (SOE) restructuring and privatisation; and promote private sector development by securing a level-playing field for investment and stronger governance.
The IMF mission had quietly landed in Pakistan on May 10 and held meetings with Pakistani authorities and other key stakeholders, including US ambassador to Pakistan Donald Blome.
Pakistan’s incumbent govt is struggling to maintain economic stability amid rising political temperatures. Islamabad had hoped to finalise the extended fund facility programme at the earliest.
Pakistan Prime Minister Shehbaz Sharif and his team had assured the IMF mission they would implement all its conditions and expected to ink a staff-level agreement during this visit by the IMF team.The IMF mission, however, stated it would decide on whether or not to give Pakistan a bailout after approval of the country’s budget by parliament.
Media reports suggest the IMF visit’s purpose was to gauge Pakistan’s budget preparations and see whether its next fiscal year economic framework was in line with the overall objectives of ensuring fiscal and external sector sustainability.
Official sources said the global lender gave Pakistani authorities a very hard time on energy, monetary and taxation policies. Implementation of all IMF conditions, experts believe,would put an extraordinary burden on the people, and some conditions carry implications for bilateral relations as well.
“Based on the preliminary findings of this mission, staff will prepare a report that,subject to management approval, will be presented to IMF’s executive board for discussion and decision,” said Nathan Porter, the IMF mission’s chief, ahead of leaving Islamabad.
Porter said Pakistan would have to continue progress towards low and stable inflation by appropriate monetary and exchange rate policies; improve public service provision through state-owned enterprise (SOE) restructuring and privatisation; and promote private sector development by securing a level-playing field for investment and stronger governance.
The IMF mission had quietly landed in Pakistan on May 10 and held meetings with Pakistani authorities and other key stakeholders, including US ambassador to Pakistan Donald Blome.
Pakistan’s incumbent govt is struggling to maintain economic stability amid rising political temperatures. Islamabad had hoped to finalise the extended fund facility programme at the earliest.