ISLAMABAD: State Bank of Pakistan (SBP) Governor Reza Baqir has said thatPakistan is in talks with the International Monetary Fund (IMF) to put thefiscal support programme back on track, adding that he was optimistic aboutthe economic outlook despite the fallout from the coronavirus pandemic.
“We hope to have good news for the market and the world that we are puttingthe program back on track,” the country’s central bank governor said in aninterview at the Reuters Next conference on Monday.
With dwindling foreign exchange reserves and a struggling economy, Pakistanentered a three-year $6 billion IMF bailout programme in 2019 but is yet tohave its second review approved, which has been pending since early lastyear.
Last year, staff from the IMF and Pakistani authorities reached anagreement to pave the way for a disbursement of $450 million in IMF fundspending approval from the global lender’s executive board, which is yet totake place.
Baqir said there was no disagreement on the end goal between the two sides,and that Pakistan needs to increase its low tax to GDP ratio.
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Pakistan and the IMF have been working to implement IMF-supported economicreforms, in particular tax collection, aimed at stabilizing the economy andshoring up a yawning fiscal deficit.
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