ISLAMABAD : Jan 26, 2023: As Pakistan’s economy faces risk of collapse due to dwindling forex reserves, International Monetary Fund (IMF) has confirmed that its mission is visiting Pakistan from January 31 to February 9,2023 for 9th review . The outcome of the review will decide the resumption of IMF programme and release of $ 1.8 billion to Pakistan under Extended Fund Facility (EFF).
IMF had approved $ 6 billion dollar under EFF last year and later increase the loan to $ 7 billion but withheld the release of funds when the government of Pakistan showed unwillingness to accept some hard conditions attached with the programme.
Now when Pakistan ‘s economy has landed in serious crisis , Pakistan has again approached to the fund for restoration of the programme. Seeing unwillingness to restore the programme , Pakistan has given assistance from the top level to the fund that Islamabad will complete its the installed programme .
After top level assurance , IMF has announced to send its technical mission to Pakistan for review of 9th programme.
In a statement, IMF Resident Representative for Pakistan Esther Perez Ruiz said: “At the request of the authorities, an in-person Fund mission is scheduled to visit Islamabad [from] January 31 – February 9 to continue the discussions under the ninth EFF review.”
She said that the mission would focus on policies to restore domestic and external sustainability, including to strengthen the fiscal position with durable and high quality measures while supporting the vulnerable and those affected by the floods; restore the viability of the power sector and reverse the continued accumulation of circular debt; and re-establish the proper functioning of the foreign exchange market, allowing the exchange rate to clear the forex shortage.
“Stronger policy efforts and reforms are critical to reduce the current elevated uncertainty that weighs on the outlook, strengthen Pakistan’s resilience, and obtain financing support from official partners and the markets that is vital for Pakistan’s sustainable development,” she added.
IMF mission will review Pakistan’s policy work for reforms in different areas of its economy. It will seek assurance from Pakistan to address policy issue to improve its revenue collection, address the issue of gas and electricity prices and improve efficiency in different key areas of its economy.
