https://arab.news/8hmt7
- IMF delegation led by Nathan Porter arrived in Pakistan on Monday to assess country’s economic performance
- Pakistan secured the $7 billion Extended Fund Facility (EFF) last summer as part of an economic recovery plan
KARACHI: Pakistan and the International Monetary Fund (IMF) on Tuesday formally kicked off talks for the first review of a $7 billion bailout program that Islamabad secured last year, the finance ministry said in a statement.
A Pakistani economic adviser told Arab News on Monday, requesting anonymity, that a nine-member mission led by Nathan Porter had landed in Pakistan to assess the country’s economic performance to determine the release of a $1.1 billion tranche over the following three weeks.
Pakistan has made little economic gains since securing the IMF bailout last summer. The country’s consumer price index (CPI) inflation rate, maintaining a downward trend on Monday, hit a more than 9-year low at 1.51 percent year-on-year in February.
“Pictures of kick-off meeting held today, ” the finance ministry wrote as caption of two photos shared with media on WhatsApp. The pictures showed Pakistani officials, led by Finance Minister Muhammad Aurangzeb, involved in discussions with an IMF delegation led by its Pakistan mission chief Nathan Porter.
Pakistan’s finance ministry has so far not shared any details of the talks between the government and the IMF. However, local media has widely covered the delegation’s visit.
Top Pakistani news channel, ARY News, reported that the IMF was demanding action against tax evasion in Pakistan’s real estate sector.
“During the talks, the IMF pushed for action against those misdeclaring property values,” ARY reported on Monday, saying the government had assured the international lender it would activate the Real Estate Regulatory Authority.
“Strict penalties, including imprisonment and fines, will be imposed on individuals and agents who falsely declare property values … As per sources, failing to register could result in a fine of up to Rs500,000,” ARY added.
Pakistan’s Dawn newspaper said the government “remains optimistic about a successful conclusion to the talks.”
“The performance review, in principle, is based on the first half of the current fiscal year — July 1 to Dec 31, 2024 — and while some shortcomings could be observed at that time, all those missing links have now been covered,” Dawn reported, quoting a Pakistani official.
The IMF team usually spends around two weeks reviewing fiscal reforms and policy.
Last week, a separate IMF team visited Pakistan to discuss around $1 billion in climate financing on top of the EFF. That disbursement will take place under the IMF’s Resilience and Sustainability Trust, created in 2022 to provide long-term concessional cash for climate-related spending, such as adaptation and transitioning to cleaner energy.