Govt struggles for $1.18bn tranche

Amid time running out, the International Monetary Fund (IMF) is still analysing Pakistan’s fiscal position particularly the flood-related expenditures that it viewed had changed the macroeconomic assumptions of the fund programme. The “IMF understands that the floods have changed the macroeconomic assumptions on which the programme was designed; therefore detailed analysis is being conducted by their team using the data provided”, the Ministry of Finance said in response to a media query on delay in 9th review. The two sides had been virtually engaged for more than a month now in attempts to conclude the 9th review this month so that the next tranche of about $1.18 billion could be approved by the IMF’s executive board and disbursed before Xmas and new year holidays. The policy level discussions are yet to be finalised although the finance ministry said the “IMF team is expected to visit Islamabad soon for completion of the 9th review”.