IMF board to meet on January 28 for Pakistan's sixth review

The Executive Board of the International Monetary Fund (IMF) will meet on January 28 for Pakistan's sixth review under the Extended Fund Facility (EFF), it was learnt on Tuesday.

The IMF website, which lists its Executive Board Calendar, showed Pakistan's discussion would be taken up on January 28.

The discussion, '2021 Article IV Consultation, Sixth Review Under the Extended Arrangement Under the Extended Fund Facility, and Requests for Waivers of Nonobservance of Performance Criteria and Rephasing of Access', comes after Pakistan's finance ministry requested that the meeting be moved to the end of January.

Earlier, the finance ministry had announced that the sixth review of the $6-billion EFF would be held on January 12.

On Thursday last week, Pakistan's National Assembly passed the Finance (Supplementary) Bill and the State Bank of Pakistan (SBP) Amendment Bill, 2021, widely seen as prior conditions needed for the sixth review.

6th Review of $6bn EFF: IMF board to take disbursement decision only after passage of bill

Completion of the review would make available SDR 750 million (about $1,059 million), bringing total disbursements under the EFF to about $3,027 million.

Last year in November, Pakistan and the IMF reached a staff-level agreement on policies and reforms needed to complete the sixth review under the $6 billion EFF.

Meanwhile, Tahir Abbas, Head of Research at Arif Habib Limited, said approval from the IMF board would bring much-needed clarity to the market.

"Things will get streamlined, and the uncertainty persisting in the markets would reduce as picture on the macro front would become visible,” he told Business Recorder.

Abbas said revival of the IMF programme would also make the "economy disciplined".

"This is positive news for the money as well as the equity market. Furthermore, the IMF nod also makes it easier for other international lenders to give funds to Pakistan," added Abbas, a remark that comes as Pakistan looks to issue US dollar-denominated Sukuk bonds as well.