The International Monetary Fund (IMF) Thursday raised concerns about the upcoming General Elections and the role of the Special Investment Facilitation Council.
The lender’s mission chief Nathan Porter during his first meeting with interim Finance Minister Dr Shamshad Akhtar set the tone for the first review set to conclude on November 15 if all goes as planned.
The IMF official applauded the government’s performance in the first quarter of 2023-24 but expressed unease pertaining to the upcoming General Elections and SIFC, reported Express Tribune.
Notably, the election date directly impacts the next IMF review as well as any new agreement with the lender. The proposed date for the next IMF board meeting is March 1, meaning that the third review for the $3 billion Standby Arrangement will take place in February 2024.
The IMF mission chief said the energy sector and tax reforms are the major issues pending deliberation during the review. His team inquired about the caretaker government’s stance on the supply of gas to fertilizer factories, citing the most recent meeting of the Cabinet’s Economic Coordination Committee (ECC).
On other pressing issues, the IMF mission recommended that the Pakistani government no longer control fuel prices. It further sought updates about how the policy on state-owned enterprises (SOEs) was being implemented.
Nathan Porter has lauded the government for achieving the quarterly targets but at the same time emphasized the continuation of these measures in order to maintain economic stability.
Dr. Shamshad Akhtar extended her gratitude to the IMF for its ongoing support and assured her team’s commitment to collaborating closely with the lender to guarantee the effective conclusion of the stand-by agreement and achievement of the economic objectives.
