The International Monetary Fund (IMF) has cautioned Pakistan against establishing a Special Investment Facilitation Council (SIFC) with preferred investors, emphasizing the importance of transparency and accountability in business dealings.
As reported by Dawn, Deputy Chairman Planning Commission Dr Jehanzeb Khan revealed that the IMF mission questioned the necessity of creating another institution like SIFC, expressing concerns about potential distortions and advising against the selection of preferred investors.
During ongoing discussions, the IMF stressed that transparency and accountability should be paramount in such matters.
Dr Khan highlighted that the implementation of the IMF program is in the country’s best interest, citing no current difficulties with IMF advice for enhanced taxation on the wealthy.
He stated that the people have already borne the full burden of the program and its backlog, and the focus should now shift towards easing the situation.
Dr Khan acknowledged that past challenges stemmed from delays and partial implementation of necessary adjustments. However, he noted the satisfaction of the IMF team with the SIFC briefing and explanations provided.
In response to questions, he credited administrative measures against hoarding of foreign exchange and speculative pricing for helping determine the actual value of the rupee.
Sources revealed that the IMF and Pakistani authorities covered most policy-level discussions, with a few outstanding issues. Both sides engaged in clarifications on Tuesday during the finalization of the Memorandum of Economic and Financial Policies (MEFP).
The expectation is for positive conclusions on Wednesday, following which the IMF staff mission will present Pakistan’s case to the executive board for approval of the first quarterly review under the nine-month $3 billion Standby Arrangement signed in July.
This approval would pave the way for Pakistan to receive the $710 million second tranche early next month.
