Cooperation with Pakistan will continue, we will pursue policy with the new government, IMF

The International Monetary Fund (IMF) has rejected the notion of a rift in cooperation with Pakistan, saying that co-operation would continu...

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The International Monetary Fund (IMF) has rejected the notion of a rift in cooperation with Pakistan, saying that co-operation would continue and would pursue its policy with the new government.

 

The 39th IMF program ends in September — File / Photo: Reuters

According to the IMF spokesperson in Pakistan, the new government will continue to liaise directly with the new government on measures to promote macroeconomic stability and programs.

 

Read more: Government fails to persuade IMF on amnesty scheme

The IMF statement came at a time when President Arif Ali approval to dissolve the National Assembly has created political uncertainty after the opposition's no-confidence motion against Prime Minister Imran Khan was rejected.

The finance ministry said in a statement issued after the IMF statement that the finance division and the IMF were engaged in "reform discussions" regarding the exchange of documents and the facilitation of the Tosiwi Fund.

The statement said that the rumors of suspension of IMF funds are not true, the IMF has confirmed this and made it clear that it is still committed to the macroeconomic stability of Pakistan.

Earlier, the IMF had expressed concerns over the government recently announced amnesty scheme and concerns over the impact on the financial sector and financial resources for the prime minister prices of electricity and petroleum products.

A report in the Dawn newspaper said that the seventh review of the  6 billion expansion fund program between the IMF mission and government officials ended inconclusively.

Also read: IMF next tranche of 6 billion expansion fund feared to be stalled

The report said that two installments of 1.9 billion could be met in June, approaching the federal budget.

The IMF mission appeared to be quite dissatisfied with the arguments put forward in favor of the money laundering scheme in the industrial sector.

The Pakistani team was told by IMF officials that "you have written a memorandum of economic and fiscal policy and signed that there will be no more amnesty scheme."

The fund also criticized the Third Tax Exemption Scheme despite the government move to remove the General Sales Tax Exemption in the mini-budget approved by the government for the sixth review.

Negotiations between the IMF and government officials on the seventh review of the 6 6 billion expansion fund began on March 4, with the World Bank expressing concern over the government one-step and two-step retreat policy. The effects can be devastating.

It may be recalled that the IMF had approved a three-year loan in June 2019, under which a 6 billion economic project was to be supported to support Pakistan economy so that the country economy could return to sustainable growth and quality. Make life better

The 39th IMF program is scheduled to end in September.