Power sector, privatisation to dominate IMF talks

Power sector and privatisation process are likely to dominate Article-IV consultations on $6.64 billion Extended Fund Facility (EFF) in Dubai starting from today (Tuesday). An official of Finance Ministry on condition of anonymity said that energy sector and privatisation would be the centre of discussion of the talks that would conclude on April 5, 2017.
He said that Finance Minister Ishaq Dar chaired a meeting on Monday to review the economic performance and devise a strategy in the context of Article-IV consultations. Dar would join the Pakistan delegation later to participate in the final stage of the consultations. Sources in the Finance Ministry said that Pakistan would like to obtain a positive note on its economy from the IMF and scheduled talks are important for the finance minister in this context.
Secretary Finance Tariq Bajwa briefed the meeting regarding the preparations for the weeklong consultations. He also provided an update on measures taken 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.
The minister added that the reforms have enabled the country to achieve macroeconomic stability, and the implementation of key structural reforms needs 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 EFF programme for Pakistan last September 2016 which led to the disbursement of the final tranche. The IMF''s close engagement with Pakistan is continuing through a 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 Pakistan 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 & Power, Ministry of Petroleum & Natural Resources, Aviation Division, FBR and the Privatisation Commission.