No prior actions needed for IMF’s third tranche, says Finance Ministry

• It is completely normal for quarterly reviews to sometimes take a few days more than planned, which must never be viewed as something extraordinary, says finance ministry.
• Government’s reform program supported by the IMF’s Extended Fund Facility is on track.

The Ministry of Finance on Monday has dismissed reports suggesting that tough prior actions are needed for the International Monetary Fund’s (IMF) $452 million third tranche, terming these reports as ‘misleading and factually incorrect'.

In an official statement, the Ministry of Finance stated, “It is completely normal for quarterly reviews to sometimes take a few days more than planned, which must never be viewed as something extraordinary; the second and third quarterly reviews will be presented before the IMF board separately as planned; no decision has been taken as to any prior actions; China is Pakistan’s iron brother and there is no apprehension whatsoever on the roll-over/refinancing of Chinese loans.

The Finance ministry further sad that the press statement issued by the IMF on Friday explains that: “The IMF staff team had constructive and productive discussions with the Pakistani authorities and commended them on the considerable progress made during the last few months in advancing reforms and continuing with sound economic policies,” and that “[a]ll end-December performance criteria were met, and structural benchmarks have been completed.”

“The Finance Division would like to make it very clear that the Government’s reform program supported by the IMF’s Extended Fund Facility is on track,” the statement added.

The International Monetary Fund (IMF) mission Friday concluded its staff level visit, expressing satisfaction with the progress made during the last few months in advancing reforms and continuing with sound economic policies.

“All end-December performance criteria were met, and structural benchmarks have been completed," an IMF press release, issued at the conclusion of its Mission's visit to Pakistan, said.