IMF holds consultation on economic challenges to Pakistan

ISLAMABAD: At a time when installation of caretaker setup is around the corner, the IMF has invited a number of renowned economists, academicians and former senior government officials at Washington DC for holding ‘broad based’ informal consultations for devising future roadmap regarding economic challenges of Pakistan and possibility for extending another bailout package in case Islamabad made a formal request.

“Yes, the IMF has held broad based informal consultations with eminent economists, academicians and retired senior government officials from Pakistan at Washington D.C and arranged round table conference during this week by extending special invitations,” the concerned sources confirmed to The News here on Thursday.

Pakistan has not yet officially approached the IMF for making any formal request for bailout package. Pakistan is expecting some dollar inflows from China in shape of SAFE deposits in order to support its balance of payment but couple of billions could rescue Islamabad for period of couple of months only. It seems that the IMF package is imminent after elections although preparatory talks may kick-start even during the tenure of interim regime.

Just ahead of installation of caretaker setup in Islamabad, the Fund invited experts of different sectors at Washington as part of consultation process to learn mistakes from the past programmes and devise such a roadmap that could help Islamabad to overcome its growing economic difficulties. All programmes of the IMF had failed in achieving the desired objectives and except during the tenure of incumbent PML-N led regime all other programmes struck down half way when Islamabad was known as one or two tranche country.

One official told in background discussions that there will be more consultations in Islamabad, Lahore and Karachi. The IMF, he said, is really worried about rising debt burden especially from Chinese side. Due to bad track record of structural reform, stringent tax reform may be prior action. Standby rather than medium term facility is on cards, he added.

Another economist who was also invited for this consultation but he did not go to Washington for attending this consultation process said that the IMF possessed a lot of money and this trip was meant nothing for fruitful deliberations.

This scribe sent out written question to the IMF office based in Islamabad for inquiring about the purpose of this consultation at this juncture. The IMF’s Resident Representative in Pakistan Teresa Daban Sanchez told The News on Thursday that it was part of the overall agenda of the IMF to hold consultations with economists, academicians and senior retired government officials for devising future plan that how the problems faced by Pakistan could be solved on long term basis.

She said that the Article IV (4) consultation would be due in June 2018 and IMF’s mission could visit Islamabad for holding talks provided Pakistan extended invitation to the Fund on this account.

When asked whether the caretaker setup could invite the IMF for holding article IV consultation, she said that this decision would have to be taken by the caretaker government and if they invited the IMF mission then the mission would visit Islamabad during the summer period.

To another query, she said that the IMF used to hold consultations with different stakeholders and there was nothing unusual in this regard. “We are going to hold consultations with around three dozen renowned experts for holding broad based consultations and this process will continue here in Islamabad and other parts of Pakistan as well”, she added.

She concluded that the IMF would be pleased to hold consultations with all mainstream political parties as they played important role for developing broader consensus on economic reform agenda.