TAHIR AMIN

ISLAMABAD: Pakistan and the International Monetary Fund (IMF) would begin discussions on seventh review under the 6.64 billion dollar Extended Fund Facility (EFF) from the first week of May in Dubai.

This was disclosed by Resident Representative IMF for Pakistan Tokhir Mirzoev on a courtesy visit to Business Recorder offices in Islamabad. After the spring annual meeting in Washington scheduled for 17-19 April Pakistani officials would meet the IMF mission in Dubai from May 1-11 for the seventh review, said Mirzoev, adding that the mission chief is likely to give a briefing on May 11 or 12 in Pakistan.

Pakistan remains a security risk for IMF missions; however on the conclusion of the review mission, Mission Chief Harald Finger would come to Pakistan to hold a press briefing, he added.

Mirzoev said that Pakistan is facing 4-5 structural deficiencies/weaknesses that make the country’s economy vulnerable. “Even if something happens outside Pakistan, the country feels it as it lacks sufficient resilience inside,” said Mirzoev.

Mirzoev, Resident Representative, said that while in the past Pakistan has rarely completed Fund programmes yet Finance Minister Ishaq Dar has said the programme is going to be completed this time. He added that Pakistan has been on 17 to 18 IMF programmes so far and after every five or six years the country has sought a Fund programme as the country faces a new crisis like situation. The ultimate objective is to make Pakistan able to stand on its own and not to rely on others.

“The country has imbalances in the economy, export competitiveness is not very high and expenditures are high. There are imbalances on energy side, imbalances on business climate side, so there are four or five structural weaknesses,” he added.

The country has to face the challenge of fixing these factors in the upcoming phase of the EFF. If the government succeeds in fixing energy crises, business climate and fiscal position, the change in climate will be dramatic, he added.

He further said that in 2013 when the IMF program began the country was near to a crisis-like situation with foreign exchange reserves were declining, and an economic disaster feared. Resultantly, talks with the IMF began.

“We have some assurance now that the tension of immediate crisis is no longer there,” he added.

Mirzoev said that now the country is at ‘stage-two’ and the stabilization process of macro economy is under way. Foreign exchange reserves are being built up and budget deficit is being reduced.

Mirzoev said the proposed laws relating to anti-money laundering and independence of the State Bank of Pakistan (SBP) are being laid in National Assembly for discussion.

He further added that the IMF has no practical mechanism in place to verify statistics that a government shares with the Fund staff; however, he added, that IMF can provide technical support for strengthening the statistical gathering machinery.