Pakistan, IMF fail to agree on MEFP under USD 6 billion Extended Fund Facility

The Pakistani government and the International Monetary Fund (IMF) have not finalised the Memorandum of Economic and Financial Policies (MEFP) for the completion of the Sixth Review under the USD 6 billion Extended Fund Facility (EFF).

Islamabad:The Pakistani government and the International Monetary Fund (IMF) have not finalised the Memorandum of Economic and Financial Policies (MEFP) for the completion of the Sixth Review under the USD 6 billion Extended Fund Facility (EFF), reported local media.

Islamabad has found itself in a very tough situation concerning the international money lender's situation. There are risks attached for Pakistan either with or without the IMF loans, reported Geo News.

For one, in the last two weeks, the State Bank of Pakistan's foreign currency reserves has decreased by USD 1.6 billion as Islamabad had paid USD 1 billion on the maturity of the international Sukuk Bond. On the other hand, inflation is rising in Pakistan. This week, the Sensitive Price Index (SPI) stood at 14.5 per cent this week as it increased by 1.4 per cent in the last one week period compared to the last week. The adjustments made on Pakistan Oilfields Limited (POL) and electricity prices as well as the devaluation of the rupee against the dollar jumped up the SPI by 1.4 per cent in the one-week period, said Geo News.

Meanwhile, Shaukat Tarin, Adviser to the Prime Minister on Finance and Revenues, who was in Washington for MEFP talks, left for Saudi Arabia without concluding the talks, to be part of the official entourage of Prime Minister Imran Khan.

When contacted, IMF Resident Chief in Pakistan Teresa Daban Sanchez in her brief reply on Friday stated, "Still working on it". Official sources told The News that the ball is now in the IMF's court, so it remains to be seen in the coming days how the Fund decides to proceed further.

ANI