Pakistan seeks IMF’s next $452m tranche

ISLAMABAD: Pakistan’s Adviser to Prime Minister on Finance Dr Abdul Hafeez Shaikh and Governor State Bank of Pakistan (SBP) Dr Reza Baqir have signed Letter of Intent (LoI) and dispatched it to IMF headquarters for getting approval of next tranche of $452 million next week.

Now the IMF’s Executive Board is scheduled to meet on December 19 at Washington DC for approving the first review and release of second tranche under $6 billion Extended Fund Facility (EFF).

On behalf of Pakistan, Dr Abdul Hafeez Shaikh and Reza Baqir signed LoI and its attachment Memorandum of Economic and Financial Policies (MEFP) to demonstrate commitment that Islamabad would pursue all committed reforms and conditions so the Executive Board of Fund should grant its approval for release of next installment worth $452 million.

“The IMF management have circulated signed MEFP among the members of Executive Board and now the meeting is scheduled to take place before Christmas holidays on December 19, 2019 for approving release of next tranche” official sources confirmed to The News here on Thursday.

When asked to Special Secretary Finance and official spokesman Omar Hamid Khan last week, he told this scribe that Pakistan had not made any request to the IMF for granting of any waiver as all required performance criteria were met successfully.

However, the sources said that there were certain performance indicators on which Islamabad could not perform well within the envisaged deadline of period of first review so it is yet to see how the IMF treats in such scenario.

This scribe had also contacted to IMF’s Resident Chief in Pakistan Teresa Daban Sanchez last week, she replied that everything was ready for Board meeting before Christmas as originally planned. The official sources said that with completion of first review and approval of second tranche on December 19, Pakistan will be able to get $452 million probably before Christmas holidays.