Sixth review of EFF facility to be presented to IMF board on Jan 12

ISLAMABAD: The finance ministry on Thursday confirmed that the sixth review of the Extended Fund Facility will be presented to the International Monetary Fund's (IMF) executive board on January 12.

Muzzammil Aslam, spokesperson to the finance minister, said on Twitter: "I am pleased to confirm 6th review will be presented to IMF Board on January 12, 2022."

Pakistan will fulfil the condition imposed by the IMF as prior action before the date set to present the review, said the officials from the finance ministry.

They said that a tax exemption of Rs350 billion will be withdrawn through the mini-budget. The SBP’s Autonomy Bill, meanwhile, will also be passed through parliamentary approval, the officials added.

A day earlier, in the wake of increasing difficulties on the political front, the government had withdrawn for the time being the mini-budget encompassing Tax Laws (Fourth) Amendment Bill, from the federal cabinet and decided to hold further consultations with Prime Minister Imran Khan for devising a fresh strategy.

The government wanted to convince the IMF that it would present the mini-budget through a Presidential Ordinance but the Fund staff shot down the proposal. The revival of the IMF programme had entered into a danger zone because if the Fund did not budge from its earlier demands to get parliamentary approval for two key bills, including Tax Laws (Fourth) Amendment Bill and SBP’s Autonomy Bill, then the revival of IMF programme would be at stake.

The IMF had strongly rejected the proposal for promulgation of Presidential Ordinance in the past but the government seems to be left with no option but to engage the IMF again to convince it. The government wanted that the promulgation of the ordinance be allowed till the upcoming budget and to withdraw GST exemptions as part of the next budget through Finance Bill 2022.