The International Monetary Fund (IMF) said the new bailout package for Pakistan will be finalised only after Pakistan fulfils its previous commitments.
At a media briefing, IMF spokesperson Gerry Rice said that the next step, after the announcement of the staff-level agreement, is implementation of the agreed prior actions by the authorities to prepare for the fund’s Executive Board’s consideration of the loan request which is tentatively scheduled for early September. However, he made it clear that this will be done provided the prior actions are met.
“The prior actions include the fiscal package, electricity price adjustments, launching of a tax reform initiative, certain central bank actions, and approval of the fiscal commitments by the Council of Common Interests (CCI),” Rice said.
When asked, if the IMF got any guarantees from the authorities in Pakistan that the programme will not go off track like it did before, the spokesperson said the fund will move forward on the basis of commitments made by the government.
“When we move forward with these staff-level agreements, which we have made with Pakistan, they are, of course, on the basis of commitments made by the government. So, we’re moving forward on that assumption,” he said, adding that the next steps now include implementation of those agreed “prior actions and commitments. So that’s the next step”.
On Greece and Portugal, Rice said the IMF is known for its straightforward and candid analysis, adding, “We are accountable to our shareholders, the member countries, and I can assure you that in the case of Europe, the countries with which we are involved, our shareholders there are well aware of our views.” “And, you know, I’d also say we have — as I think you all know, we have mechanisms in place to ensure that our rigorous assessment, our objective analysis, can be conveyed on a regular basis to the respective authorities and, in fact, to the world,” Rice added.
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