ISLAMABAD – Pakistan and the International Monetary Fund (IMF) have failedto strike a staff-level agreement in wake of differences over themacroeconomic framework besides uncertainty over the future roadmap of theeconomy.
It was for the second time that Pakistan and the global lender could notfind the basis for the completion of the 6th review – the first attemptmade in June also remained inconclusive.
Reports in local media quoting sources said the recent round of talks fromOctober 4 to 15 remained inconclusive as both sides have failed toreconcile on the Memorandum of Economic and Financial Policies (MEFP)despite the surge in electricity and petroleum products prices in Pakistan.
Reports further added that the IMF staff is unconvinced with themacroeconomic framework under the MEFP and without agreement over it, thestaff-level agreement will not be struck and the IMF tranche will bejeopardised.
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Meanwhile, Islamabad expects the finance secretary to prolong his stay inthe US capital for the next few days to make further efforts in reconcilingand evolving consensus on the MEFP and completion of the sixth and seventhreviews, to pave way for the approval of $1 billion under the IMF ExtendedFund Facility.
