IMF’s unease

THE first round of ‘engagement’ between Pakistan and the IMF over the former’s request for a larger and longer programme appears to have concluded — with some bumps still visible. Both sides are believed to have reached an understanding on the reform measures that Islamabad must include in the budget for the next financial year and get approved by parliament before an agreement on a new bailout facility is signed. A report in this paper has quoted a government official as saying that the IMF mission is leaving the country without announcing a formal staff-level agreement, because the “Fund wants a stamp of approval from parliament for the reforms and policy actions [to be implemented as ‘prior actions’ for the new programme] given the unpredictable political environment”.