The revival of $ 6 billion IMF Extended Fund Facility (EFF) still needs clearance from IMF’s two departments—Strategy Policy and Review Department and Legal Department—before getting approval from IMF’s Executive Board.
The Executive Board accords approval only after getting clearance from the staff-level agreement and the two departments reported a national daily.
Strategy, Policy and Review Department, and Legal Department are known as the ‘Fund’s Policeman.’ In case the two departments do not give a go-ahead, the settlement of the sixth review can be further delayed.
“Now the ball is in the court of the IMF and the two departments are currently scrutinising whole details before granting stamped approval after which the staff-level agreement will be made public and placed before the IMF’s Executive Board for approving the sixth review under the Extended Fund Facility (EFF),” informed the official.
It was reported that Prime Minister Imran Khan and the Adviser to PM on Finance, Shaukat Tarin, deliberated calling the Managing Director IMF, Kristalina Georgieva. However, the plan was later dropped.
Later in a tweet, the finance advisor rejected the news saying such a proposal was never under consideration
“There is no need for a telephone call to the managing director of the IMF,” said the Financial Adviser responding to a question regarding the necessity of the call on Monday.
Later in a tweet, the finance advisor rejected the news saying such a proposal was never under consideration. The advisor’s statement was only a response to the media reporter’s question if the premier will call the IMF chief. He clarified that his reply was that negotiations are in advance and there is no need for a call.
The current outstanding issues are beyond the scope of the IMF’s personnel and Mission Chief operating in Pakistan on their behalf. They have reported all concerns and are now awaiting clearance. If these two departments do not stamp approval, the clearance of the sixth review may take longer to reach a conclusion.