Authorities are optimistic about reaching a staff-level agreement (SLA) with the International Monetary Fund (IMF) during Finance Minister Muhammad Aurangzeb’s upcoming visit to the United States.
The agreement’s conclusion, however, hinges on consensus over Pakistan’s external account position, verified estimates of flood-related losses, and the fiscal adjustments between federal and provincial governments.
According to a report, the IMF has already shared a draft of the Memorandum of Economic and Financial Policies (MEFP) with the government before the Fund’s delegation departed after two weeks of technical discussions.
“We were close to finalizing the SLA, but two key data tables within the MEFP required further refinements,” an official said, adding that the latest improvement in foreign remittances had bolstered Pakistan’s case regarding its external account stability.
The official noted that the State Bank of Pakistan (SBP) would maintain its cautious monetary policy stance amid a resurgence in inflation, while verification of flood-related damage assessments remains pending.
These outstanding matters are expected to be settled during the upcoming IMF and World Bank annual meetings in Washington, D.C., which the Pakistani delegation, comprising the finance minister, SBP governor, and FBR chairman, is scheduled to attend this weekend.
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The report said that public debt indicators, including fixed and floating interest rates, sukuk instruments, and debt maturities, remain within safe limits.
Via Dawn
