IMF expresses concern over Pakistan’s poor record

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Updated: July 16, 2023 03:51 IS

Islamabad (Pakistan), July 16 (ANI): After announcing the rescue package for Pakistanhe International Monetary Fund (IMF) conveyed his concern about the poor record of Pakistan and advised the country to complete the new program to reduce the confidence deficit, Pakistan-as reported by The Express Tribune.
He IMF Executive Director Bahador Bijani on behalf of the board has conveyed the message to PakistanChinese Finance Minister Ishaq Dar via virtual contact on Thursday, The Express Tribune reported citing senior sources.
The global lender conveyed the concern a day after the IMF approved the USD 3 billion Stand-By Arrangement (SBA) program for Pakistan.
Bahador Bijani is one of the 24 executive directors of the IMF board. According to sources, the IMF board had asked Bijani to convey the harsh message to Pakistanreported the Express Tribune.
During the board meeting, the IMF directors expressed serious concerns regarding PakistanThe poor record of implementing reforms and fulfilling the commitments made with the IMF the board and management, the sources said, according to The Express Tribune.
According to sources, Bijani transmitted IMF board concerns to Dar so there is no complacency in Pakistan after approval of the new program, according to the report.
On Friday, Pakistan Prime Minister Shehbaz Sharif had a telephone conversation with IMF Managing Director Kristalina Georgieva assured him that Islamabad was serious this time to bridge the confidence gap.

According to the statement released by Pakistan Prime Minister’s Office, Georgieva said that “the IMF the board was skeptical about Pakistancommitment to abide by the terms of the deal because of the past confidence deficit.” However, he assured the board that Pakistan he will fulfill his commitments as he had done Pakistan PM and seen his seriousness, according to the statement.
He IMF had discussed for the last time Pakistan‘s case in August 2022 and was scheduled to hold a meeting in November 2022 to approve the ninth review, according to The Express Tribune report. However, PakistanThe case was not discussed until June, when the board met informally to decide whether to give him the opportunity to Pakistan despite his poor record.
On June 30, the IMF announced a staff-level agreement with Pakistan that the board approved this week. According to sources, the IMF the board has communicated to Pakistan that this was the last chance for Pakistan to improve his bad reputation. He IMF board asked Pakistan to implement the new program and further stated that it will no longer give any concessions.
He IMF the board also advised Pakistan to complete the ongoing program in a way that minimizes the trust deficit between both parties. On Thursday, the IMFStrategic Communications Director of julie kozack said the “steady implementation” of the nine months reservation agreement (SBA) was instrumental in Pakistanthe future
In a sentence, julie kozack said: “Strong implementation is critical to addressing its large funding needs and supporting the most vulnerable, according to The Express Tribune. The communications director said solving PakistanChina’s structural challenges will likely require continued reforms in the medium term to drive economic transformations to strengthen growth prospects and create an environment conducive to renewed private capital inflows.
Board members also criticized PakistanThe lack of coherence of the reforms and the breach of their commitments, according to the report by The Express Tribune. This is the 23rd program signed between Pakistan and IMF. However, only one program has been fully implemented due to the support of a number of waivers against key conditions.
Although Pakistan It has so far shown determination to implement the current program, however it could prove challenging for Islamabad due to the involvement of three governments between now and the expiration of the program in March next year.
On Wednesday, the International Monetary Fund (IMF) approved a 9-month Stand-By agreement for Pakistan to support the country’s economic stabilization program, Pakistan-as reported by Geo News.
IMF in a statement said: “Today, the Executive Board of the International Monetary Fund (IMF) approved a 9-month Stand-By Agreement (SBA) for Pakistan in the amount of SDR 2.25 billion (about USD 3 billion, or 111 percent of the quota) to support the authorities’ economic stabilization program.” (ANI)