ISLAMABAD – The Pakistan government has neither requested nor held anydiscussions to go on an International Monetary Fund (IMF) programme.
Gerry Rice of the Communication Department, IMF, during a press conferencewas asked,
“We have seen the Pakistani currency devalue quite significantly recently,and there has been speculation that their officials may be seeking anothercondition to IMF loan. Is the IMF in discussions with Pakistani officialsregarding a potential loan agreement?”
Rice replied,
No. There has been no request and no discussion of a program with the IMF.
Economic analysts maintain that Pakistan’s next government, to be chosen ina July 25 election, faces growing fears of a balance of payments crisiswith speculation it will have to seek its second IMF bailout in five years.
Fitch Ratings last week stated that the authorities are expected to explorefinancing options after the elections when an agreement with the IMF mightbecome more viable. Pakistan’s last three-year IMF programme, which endedin September 2016, supported a recovery in foreign reserves, mainlyattributed to enhanced foreign borrowing, and was marked by a focus onmacroeconomic stability.
Finance Ministry remains indecisive about Article-IV consultation with theIMF. Media office focal person in the Finance Ministry Saeed Javed recentlyconfirmed that no development was taking place in the Ministry with respectto Article IV consultations with the IMF.
Article IV consultations are part of routine annual IMF monitoring ofmember countries. Pakistan’s last Article IV consultations concluded onApril 5, 2017, and the report was released in June 2017.
Pakistan-IMF talks were due in March 2018 and postponed due to budgetengagements of the previous government. According to the IMF website, theArticle IV consultations that take place on a standard twelve-month cyclewill be subject to a grace period of 3 months and, accordingly, will beexpected to be completed within 15 months of the date of the completion ofthe most recent consultation.