IMF to consider staff-level report on 27th

ZAHEER ABBASI

ISLAMABAD: The International Monetary Fund (IMF) Executive Board is going to meet on March 27-28 to consider its staff level report on Sixth Review of the Extended Fund Facility (EFF), said Secretary Finance Dr Waqar Masood.

Talking to reporters after the meeting of National Assembly's Standing Committee on Finance, Waqar said this would be the final step for release of next tranche of $518 million to Pakistan. The IMF staff team led by Jeffery Franks held discussions with Pakistani authorities in Dubai from January 26 to February 5, 2015. The IMF in a statement issued after the discussions concluded that "tax revenues were below the second-quarter indicative target by about 0.1 percent of GDP due in part to legal challenges to some revenue measures and to the fiscal effects of the plunge in international oil prices."

Finance Minister Ishaq Dar has committed to imposing a regulatory duty (RD) on non-essentials commodities and luxurious items to minimise revenue shortfall. Subsequently, a meeting of the Economic Coordination Committee (ECC) of the Cabinet had approved imposition of RD and a notification to this effect was issued by the Federal Board of Revenue (FBR). Officials privately admit on condition of anonymity that taxation measures appear to be prior action for release of next tranche and the condition has been met.

Additionally, Pakistani team has also committed to two capital market transactions of 43 percent government-held shares in Habib Bank Limited (HBL) and privatisation of three electricity distribution companies (DISCOs) in the current calendar as opposed to fiscal year. And legislation on the State Bank of Pakistan (SBP) Act would be enacted by end-June 2015 to give full autonomy to the SBP. The Finance Secretary hoped that the country would receive next tranche by the end of March or in the first week of April 2015.