The Pak Banker

Finance minister to attend IMF-WB spring meetings

- ISLAMABAD

With the government set to enter into a fresh loan agreement with the Internatio­nal Monetary Fund (IMF), Minister for Finance Mohammad Aurangzeb called on Prime Minister Shehbaz Sharif and briefed him about his upcoming visit to the United States. The finance minister discussed with the prime minister his scheduled meetings with the IMF, World Bank and other institutio­ns, the Prime Minister’s Office said in a statement.

Finance Minister Aurangzeb reached Washington on Sunday with a team of experts to attend the IMF and World Bank’s spring meetings and initiate talks on a new package of around $6 billion to $8 billion. The main ministeria­l meetings and events will take place April 17-19 with other events and activities taking place during the week, April 15-20.

Mr Aurangzeb and his team’s schedule includes bilateral meetings with the heads of the IMF and the World Bank, as well as other senior officials of various internatio­nal financial institutio­ns. They will also hold bilateral meetings with the finance ministers of China, Saudi Arabia, UAE, Turkiye, and other friendly nations attending this annual event. They will also represent Pakistan at multilater­al meetings and are expected to hold bilateral meetings with US officials, as the meetings are held in Washington.

Meanwhile, IMF Managing Director Kristalina Georgieva said that Pakistan still needs to solve some “very important issues” while acknowledg­ing that the country is seeking a new loan arrangemen­t from the lender. This marks her first public acknowledg­ement that Pakistan is contemplat­ing a potential follow-up programme with the Fund after completing its current $3bn stand-by arrangemen­t (SBA) later this month.

In their meeting, Mr Sharif and Mr Aurangzeb also deliberate­d over the country’s overall economic situation. The prime minister has already said in many of his speeches in the recent past that the government have no option but to make another deal with IMF to seek a loan to stable the crippling economy of Pakistan. The agreement is likely to be inked by the end of the current calendar year. Last month, the finance minister expressed hope for reaching a staff-level agreement (SLA) with the IMF by the end of the fiscal year (June 30). The IMF is also expected to finalise the disburseme­nt of the last tranche of $1.1bn from the existing arrangemen­t during these meetings.

Speaking at an event at the Atlantic Council, a Washington-based think tank, the IMF chief brought attention to the critical issues in Pakistan’s economy that demand urgent resolution. “There is a commitment to continue on this path, and the country is turning to the Fund for potentiall­y having a follow-up programme,” Ms Georgieva said, flagging issues that the country still needs to address. “There are very important issues to be solved in Pakistan: the tax base, how the richer part of society contribute­s to the economy, the way public spending is being directed and of course, creating … a more transparen­t environmen­t.”

She said Pakistan was successful­ly completing its existing programme with the IMF, and the economy was performing somewhat better, with reserves now being built up. Against the backdrop of Pakistan’s evolving economic landscape, the IMF chief’s call to action indicates that the negotiatio­ns for a new arrangemen­t could be long and arduous.

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