Pakistan is making efforts to secure a meeting between Prime Minister Shehbaz Sharif and IMF Managing Director Kristalina Georgieva on the sidelines of the upcoming New Global Financing Pact Summit in Paris. The country is hoping to discuss the revival of the IMF program, which is set to expire on June 30. However, despite previous attempts, the prospects for the revival of the program have been diminishing, and the pending ninth review under the Extended Fund Facility (EFF) program has yet to be completed.
Importance of the Meeting
A top official stated that the meeting between Prime Minister Shehbaz Sharif and IMF Managing Director Kristalina Georgieva holds significant importance. If the request for the meeting is declined, it will severely hinder the possibility of reviving the IMF program under the $6.7 billion Extended Fund Facility. On the other hand, if the meeting takes place and both sides achieve a breakthrough, it will increase the chances of reviving the program.
Challenges Faced by Pakistan
The IMF review mission was sent to Pakistan from January 31 to February 9, 2023, but the Staff Level Agreement (SLA) could not be signed. The IMF set certain conditions before signing the SLA, but those conditions have not been met thus far. Minister for Finance Ishaq Dar attempted to reach a consensus with IMF officials through virtual meetings in April, but no significant progress was made.
Conversation between Prime Minister and IMF MD
Prime Minister Shehbaz Sharif spoke with IMF Managing Director Kristalina Georgieva about the stalled programme. The two discussed various issues pertaining to the revival of the program for one year. However, the conversation did not yield substantial results.
Statements from IMF and Ministry of Finance
Following the discussions, IMF Resident Chief Esther Perez Ruiz issued a statement criticizing Pakistan’s budget for the year 2023-24. In response, the Ministry of Finance issued a statement expressing its commitment to continue engaging with the IMF for the conclusion of the pending ninth review. Both sides are determined to find common ground and resolve the issues.
Meeting with Britain’s Minister of State
Recently, Finance Minister Ishaq Dar held a meeting with Britain’s Minister of State in the Foreign, Commonwealth & Development Office (FCDO), Andrew Mitchell. Mitchell offered his sympathies for the lives lost in the recent boat capsize event in Greece during the meeting. Minister Dar thanked Mitchell for the condolences and emphasized the need to address illegal human trafficking promptly. Mitchell acknowledged Pakistan’s efforts in bringing economic stability through policy reforms and assured cooperation.
Importance of Economic Stability and Policy Reforms
During the meeting, Mitchell recognized Pakistan’s commitment to bringing about economic stability through various policy reforms. These reforms are aimed at improving the country’s financial situation and creating a conducive environment for growth and development. The efforts made by Pakistan in this regard were appreciated by Mitchell, highlighting the importance of sustained economic stability in the region.
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Pakistan’s request for a meeting between Prime Minister Shehbaz Sharif and IMF Managing Director Kristalina Georgieva at the New Global Financing Pact Summit in Paris is a crucial step towards reviving the IMF program. The meeting holds the potential to bring about a breakthrough and increase the chances of restoring the $6.7 billion Extended Fund Facility. However, challenges remain as the pending ninth review under the EFF program has been delayed for several months. Pakistan’s commitment to engage with the IMF and its efforts to address economic stability and illegal human trafficking have been acknowledged by international counterparts. The outcome of the meeting in Paris will have significant implications for Pakistan’s financial future.
