ISLAMABAD: The International Monetary Fund (IMF) on Monday appeared to be concerned over the political development in Pakistan, asking for assurance of the implementation of reforms promised during technical negotiations.
According to media reports, the lender said that any delay in its implementation could lead to a delay in the board meeting which will approve the release of a $1.17 billion loan tranche
Sources said that IMF can negotiate with any government in Pakistan and does not feel any problem in the continuation of the Extended Fund Facility (EFF) programme during the caretaker set up.
“Pakistan can get funds from Saudi Arabia under SDR quota and Saudi Arabia can transfer its IMF loan quota to Pakistan,” they said, adding that there are examples of the SDR quota being transferred in the past.
It is pertinent to mention here that the Fund’s executive board is expected to take up Pakistan’s staff-level report on the combined seventh and eighth review for approval in the last week of August.
Sources said that Pakistan has to deregulate petroleum prices besides implementing taxes on petroleum products is also necessary. In addition, immediate implementation of NEPRAs decisions is part of the staff-level agreement.
They said that the authority’s decision on fuel adjustment must be implemented without delay. Especially because there have been violations of agreement and deviations from policy measures in the past due to which Pakistan’s IMF program suffered from problems.
