Nascent recovery

THE IMF has expectedly announced a staff-level agreement with Pakistan following a smooth completion of the first review of the short-term $3bn bailout package, propping up the already buoyant stock market to a newer high and cheering up the rupee as the news somewhat lifted pressure on the exchange rate. The programme goals and stipulations remain the same as agreed at the time of the approval of the bridge facility in July. The IMF has also sought greater transparency in the operations of the Special Investment Facilitation Council and the management of the assets under the Sovereign Wealth Fund. The new demand betrays the lender’s concern that the recently constituted body, with powers to override any policy or decision and recommend fresh legislation to facilitate the promised investments from the Middle East, could cause distortions in the country’s investment regime and create a group of preferred investors.