State Bank of Pakistan (SBP) Governor Jameel Ahmad said that there is no pending issue from the central bank’s side in reaching a staff-level agreement with the International Monetary Fund (IMF), and any outstanding matters likely rest with the federal government.
Speaking to the media following a meeting of the Public Accounts Committee (PAC), the governor expressed hope that the agreement would be reached soon but did not provide a specific date.Â
The agreement has been delayed since March 14, after IMF review talks held from March 3 to 14 ended without finalising the Memorandum of Economic and Financial Policies (MEFP).
Jameel Ahmad said finalising such matters with various ministries and divisions can take time. The Ministry of Finance has since held at least two virtual sessions with the IMF and other stakeholders, aiming to conclude discussions on trade, tax, fiscal, and circular debt targets.
IMF Mission Chief Nathan Porter said last week that significant progress had been made toward an agreement under the 37-month Extended Fund Facility (EFF). The programme’s continuation is vital for securing the rollover of foreign debt from Saudi Arabia, the UAE, China, and Kuwait.
The SBP governor confirmed that the IMF had substantially revised its current account deficit projection for the fiscal year, down from $3.6 billion (0.9% of GDP) to a much lower figure, though he did not confirm if the new estimate is around $400 million (0.3% of GDP). He said the next fiscal year’s target was still under discussion.
The governor also noted that the IMF is revising its inflation and economic growth forecasts. He said the SBP projects GDP growth of around 3% for the current year and added that foreign remittances are expected to surpass $36 billion.
