Pakistan hopeful of reviving suspended IMF programme

Pakistan is hopeful to resuscitate the suspended $11.3 billion standby arrangement programme with the International Monetary Fund (IMF) during the upcoming talks in Dubai as the majority of the agreed benchmarks have already been implemented last month.
A senior government official, on the condition of anonymity, said the current programme could be saved as Pakistan had implemented the important conditions, like macro economic stability, broadening the tax net and power sector reforms in April. “These three issues were of major concerns to the IMF. Since we have made progress on all these benchmarks, we are hopeful of salvaging the existing programme.”
However, he conceded that some of the agreed benchmarks including the amendments for granting further autonomy to the State Bank of Pakistan and National Electric Power Regulatory Authority (NEPRA) were delayed, as they required political consensus for approval from the Parliament. “They acknowledge our difficult situation and difficult decision we have taken.” When asked whether the IMF would release one tranche, he said, “We are trying to save the programme and its continuation. If the programme is revived then that is possible.”
Pakistan has to receive two tranches of $3.4 billion from the suspended programme, which resulted in delay of assistance from other multilateral institutions like World Bank (WB) and Asian Development Bank (ADB). However, the IMF recently assured Pakistan that it would facilitate in the release of $ 1 billion budgetary support from the WB and ADB. Pakistan and IMF will hold a week-long talks starting from May 11 in Dubai, which will hover around Pakistan’s performance during the last 45 days as agreed with an earlier fund mission in March. Pakistan will also present is budget strategy to the IMF.
The existing programme with IMF was suspended in May 2010 after Pakistan missed implementing various economic reforms because of political differences among the coalition parties. However, differences have thinned out as a result of dialogue within the government and with the opposition parties.