ISLAMABAD: Pakistan will hold weeklong talks with the International Monetary Fund (IMF) on the last tranche of $62 million under the Extended Fund Facility (EFF) debt agreement on July 27 in Dubai.
Upon the success of this review, Pakistan will be able to get the last tranche of $62 million under the $6.4 billion loan programme. This is the first time in Pakistan’s history that any government will complete the IMF’s loan programme.
The IMF had serious concerns over the privatisation programme, more than Rs 500 billion circular debts and non-collection of electricity bills from consumers.
But the government is trying its best to meet the demands of the financial institution.
Official of the Finance Ministry said that the government was trying its best to comply with the demands of the IMF and in this perspective the last meeting of the Cabinet Committee on Privatisation (CCOP) was held on July 14. The committee has given go-ahead to the divestment plan of Pakistan Steel Mills (PSM), Privatisation of FESCO, IESCO and KEPCO and restructuring of Pakistan International Airlines Corporation Limited (PIACL).
The government has achieved key targets of proficiency on the conclusion of 11th review of Pakistan economy. In the light of its consultation with the IMF on medium-term economic framework, the government tabled budget for the fiscal year 2016-17 in parliament and got a nod in this respect.
The government has achieved the target of uploading quarterly performance reports of power distribution companies on the website of the ministry following completion of review of these reports in the meeting of Economic Coordination Committee. This was done so that the people could know about the financial position and performance of the power distribution companies in their respective areas to the effect whether these have succeeded in achieving key targets.
The conditions for seeking approval in respect of ‘deposit protection fund act’ in consultation with the IMF and conditions for determination of long-term cost of electricity in respect of three distribution companies – IESCO, FESCO and LESCO – have not been met so far.
The government has achieved certain targets, which include special audit of 50 richest people and elimination of corruption in tax machinery.
The government has presented a draft law in parliament for harmonising Fiscal Responsibility and Debt Limitation Act, 2005, to modern time’s requirements.