Finance minister finalises strategy for IMF meeting

ISLAMABAD: Finance minister Ishaq Dar will reveal government’s strict financial discipline and measures, designed to keep the budget deficit within 4 percent of GDP during the ongoing fiscal year of 2016/17 when he meets the International Monetary Fund’s team in Dubai next week, officials said on Monday.

Pakistan and IMF will start the talks in Dubai from Tuesday (today), March 28, and the finance minister would join the policy level talks starting April 3. The government will also brief the IMF about initiating the stalled privatisation programme, under which different public sector entities would be privatised.

Its details and exact strategy will be firmed at the conclusion of talks under Article IV consultation between Pakistan and the IMF teams. The rising circular debt might also be discussed at the Dubai talks.

“Finance minister Ishaq Dar will participate in the talks at the final stage, as he is expected to depart for Dubai on April 2, and will participate in the policy level talks from April 3 to 5, 2017,” official sources confirmed while talking to The News on Monday.

According to the announcement made by the Finance Ministry, finance minister Ishaq Dar chaired a meeting on Monday to review the economic indicators as well as progress on various economic reforms, in the context the scheduled consultation with the IMF in Dubai.

The finance minister will join the Pakistan delegation later to participate in the final stage of the consultations. Finance secretary Tariq Bajwa briefed the meeting regarding the preparations for the week-long consultations. He also provided an update on measures undertaken for strengthening the reforms process.

The finance minister expressed the hope that the two sides would have a constructive round of discussions as had been the case during the preceding quarterly review meetings. He urged that the progress Pakistan has achieved in the sphere of economic reforms should be fully projected during the consultations.

He said the reforms have enabled the country to achieve macro-economic stability, and the implementation of key structural reforms needed to be continued in order to foster higher, more inclusive and sustainable economic growth.

It may be recalled that IMF Executive Board completed the 12th and final review of an Extended Fund Facility (EFF) programme for Pakistan last September, which led to the disbursement of the final tranche.

The IMF’s close engagement with Pakistan is continuing through policy dialogue in the context of regular consultations and post-programme monitoring. During the consultations in Dubai, a detailed review of reforms carried out by Islamabad in different areas of the economy, particularly the energy sector would be undertaken.

The meeting was attended by senior officials of the Ministry of Finance, Ministry of Water and Power, Ministry of Petroleum and Natural Resources, Aviation Division, Federal Board of Revenue, and the Privatisation Commission.