Pakistan has firmed up its strategy for the upcoming week-long consultations with the International Monetary Fund (IMF), starting from March 28 in Dubai, in which performance of energy, taxation and privatisation sector will be specially reviewed by the IMF authorities.
An informed source said that the government is worried about the performance of the energy sector, as many of the vital reforms have been delayed and the jinx of the circular debt has risen to the same level it was four years ago. The government has also performed badly on the taxation reforms, while the privatisation of public sector enterprises has nearly fizzled out due to political difficulties.
It is important to mention that IFIs have already warned the government that delay in the implementation of energy reforms could reverse the process if strict adherence to the agreed reform program was not maintained. Pakistan is expected to seek another stabilisation program from IMF after holding general elections in the coming year’s time.
An official statement said that Finance Minister Ishaq Dar chaired a meeting on Monday to review the economic indicators as well as progress on various economic reforms, in the context of Article – IV consultations between Pakistan and the IMF, scheduled to commence in Dubai on 28th March 2017. The minister will join the Pakistan delegation later to participate in the final stage of the consultations.
Finance secretary briefed the meeting regarding the preparations for the week-long consultations. He also provided an update on measures undertaken for strengthening the reforms process. During the consultations in Dubai, a detailed review of reforms carried out by Pakistan in different areas of the economy, particularly the energy sector would be undertaken.
The minister expressed the hope that the two sides would have a constructive round of discussions as had been the case during the preceding quarterly review meetings. He urged that the progress Pakistan has achieved in the sphere of economic reforms should be fully projected during the consultations.
He said that the reforms have enabled the country to achieve macroeconomic stability, and the implementation of key structural reforms needs to be continued in order to foster higher, more inclusive and sustainable economic growth.
It may be recalled that IMF Executive Board completed the 12th and final review of an Extended Fund Facility (EFF) program for Pakistan last September, which led to the disbursement of the final tranche. IMF’s close engagement with Pakistan is continuing through policy dialogue in the context of regular consultations and post-program monitoring.
The meeting was attended by senior officials of the ministry of finance, the ministry of water and power, the ministry of petroleum, aviation division, FBR and the privatization commission.
