The International Monetary Fund (IMF) team is expected to arrive here on Tuesday to discuss recent economic developments and progress made by the government of Pakistan in implementing policy measures to restore macroeconomic stability and supporting structural reforms, sources told Business Recorder. They said that the IMF team would be in Pakistan for one week, from March 1 to 8, to discuss the IMF Stand By Arrangement and the fifth review.
The IMF delegation will be headed by Adnan Mazarei, Assistant Director, Middle East and Central Asia Department. The government of Pakistan, sources said, has not yet succeeded in developing political consensus that would enable it to comply with key IMF conditions: Reduction of the budget deficit to 5.1 percent, that would require implementation of the value-added tax, renamed 'eformed general sales tax' (RGST), and power sector reforms, including elimination of the inter-circular debt.
Failure to comply is expected to stall the SBA still further and compromise the release of the sorely needed second last tranche estimated at 1.7 billion dollars. The IMF visit is expected to focus on supporting the ongoing dialogue and has been brought about on the request of the government of Pakistan, official sources said.