IMF delays programme revival for Pakistan, stresses removing fuel, energy subsidies

                ISLAMABAD, The International Monetary Fund (IMF) concluded talks

with the Pakistan team for the revival of the Extended Fund Facility Programme on Wednesday and stressed taking concrete policy actions, including in the context of

removing fuel and energy subsidies and the FY2023 budget, to achieve program

objectives.

An IMF mission led by Nathan Porter held both in-person and virtual discussions in Doha, Qatar with the Pakistani authorities during May 18-25 on policies to secure macroeconomic stability and support sustainable growth in Pakistan. “The mission has held highly constructive discussions with the Pakistani authorities aimed at reaching an agreement on policies and reforms that would lead to the conclusion of the pending seventh review of the authorities’ reform program, which is supported by an IMF Extended Fund Facility arrangement, Mr Porter said in a statement after conclusion of the discussions.

Considerable progress was made during the mission, including on

the need to continue to address high inflation and the elevated fiscal and

current account deficits, while ensuring adequate protection for the most

vulnerable. In this regard, the further increase in policy rates implemented

on May 23 was a welcome step. On the fiscal side, there have been deviations from the policies agreed in the last review, partly reflecting the fuel and power subsidies announced

by the authorities in February, he added. “The IMF team looks forward to continuing its dialogue and close engagement with Pakistan’s government on policies to ensure macroeconomic stability for the benefit all of Pakistan’s citizens”, he added.