IMF loan revival in Pakistan hinges on approval from two departments (report)

The IMF headquarters in Washington. Photo: AFP
  • Approvals stamped from the Strategy, Policy and Review and Legal Departments will revitalize the lending program.
  • The IMF’s Strategy, Policy and Review Department (SPRD) is known as a policeman among IMF staff.
  • The outgoing Governor of the State Bank of Pakistan, Dr Reza Baqir, has served in the Strategy, Policy and Review Department.

ISLAMABAD: The revival of the blocked $ 6 billion International Monetary Fund (IMF) program for Pakistan depends on the stamped authorization of the two IMF departments known as the Department of Strategy, Policy and review and Legal Department.

Major official sources said The news in substantive discussions that the IMF Executive Board gives its approval after obtaining approval of the agreement at the staff level and these two important departments.

The IMF’s Strategy, Policy and Review Department (SPRD) is known as a policeman among IMF staff. Pakistan’s outgoing governor, the State Bank of Pakistan, Dr Reza Baqir, had also served in this department during his career at the IMF.

According to the report, Baqir knew how the SPRD and the Legal Department handle cases before sending them to the IMF Executive Board.

“There is no need to call the managing director of the IMF,” Prime Minister’s finance adviser Shaukat Tarin said on Monday in a brief conversation when asked if it was necessary that Prime Minister Imran Khan calls on IMF Managing Director.

“Now the ball is in the IMF’s court and the two departments are currently reviewing the details before granting a stamped approval, after which the staff-level agreement will be made public and submitted to the IMF’s Executive Board for approval. of the sixth review under the Extended Financing Facility (EFF), ”confirmed leading official sources in an interview with The news here Monday.

The pending issue is now beyond the remit of IMF staff and the Head of Mission working in Pakistan on behalf of the IMF. According to the report, all issues with both have been reported and everyone is just waiting for Board approval. If these two departments have not cleared the loan, the approval of the sixth review may take longer to reach a settlement.

It is relevant to mention here that the Prime Minister’s finance adviser, Shaukat Tarin, publicly stated last week that the IMF deal was expected in a day or two but last week went unsuccessfully.

Now, the IMF and the Ministry of Finance prefer to remain silent, knowing that both sides have done their part and that the IMF staff have reported all the details and are only waiting for these two departments to issue the authorization.

Originally posted in The News

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