Another IMF programme in the offing

Federal Secretary Finance Abdul Wajid Rana is likely to get six month extension in its service as the government may have to negotiate another loan programme with the International Monetary Fund(IMF) this fiscal year.
According to sources during current financial year 2012-13 the government is likely to negotiate a fresh loan programme with the Fund to ensure smooth repayment of the remaining installments to the IMF and for this purpose
the finance ministry has sent a summery to the Prime Minister seeking six months extension in the service of federal secretary finance who will reach at the age of superannuation on November 6 next month.
“The Finance minister Dr.Abdul Hafeez Sheikh does not want to change economic team at the highest level because of expected talks for another loan programme with IMF,”sources said, adding that any change in the finance team at this stage will create troubles to execute fresh loan talks with the fund.
According to the repayment schedule agreed between Pakistan and IMF, Pakistan will repay its obtain $7.6 billion to the IMF till the end of fiscal year 2014-15. The $11.3 billion SBA program had expired on September 30, 2011 and the last two trenches of $3.7 billion could not pay to Pakistan by IMF following Islamabad’s failure to pursue key reforms as well as the emergence of the revenue figures fiasco.
Pakistan had enter into a $11.3 billion programme in 2008 with IMF and got disbursements of about $7.6 billion, but failed to get the remaining $3.7 billion due to slippages in performance criteria, leading to suspension of the programme in May 2010 and was ended unsuccessfully on September 30,2011.
Secretary Finance Abdul Wajid Rana and spokesman of the ministry Rana Asad Amin could not be contacted immediately for their comments despite repeated attempts made to have their version on the issue.