ISLAMABAD (Ahmed Mughal):- The IMF handed over tough targets to Pakistan Govt under Extended Fund Facility on the eve of issuing of one billion dollar tranche.
The IMF issued one billion dollar tranche for Pakistan out of six billion for 39 month loan program. It also made public the conditions through the country report for which, the country has to meet to able for getting next tranche in Sept 2019.
The Fund has issued a Country Report on Pakistan today in Washington.
According the Country Report, the IMF extended to two conditions in fiscal side. It also said that the Govt of Pakistan will not grant further tax amnesties in future. It also said that the the Govt has to issue licenses for the track-and-trace system for excises on cigarettes up to end-September 2019.
Monetary and Financial
On the Monetary and Financial side, the Fund has also gave Structural Benchmarks for next quarter and biannual. It has also gave target to adopt measures to strengthen the effectiveness of the AML/CFT framework to support the country’s efforts to exit the Financial Action Task Force list of jurisdictions with serious deficiencies up to end Oct 2019.
The IMF also said that the Govt has to submit to an amendment bill in parliament in consultation with IMF staff to the State Bank of Pakistan Act to address all end-December 2019 recommendations of the new 2019 Safeguards Assessment Report and the 2016 Technical Assistance Report on Central Bank Law Reform.
The Fund has has to notify the electricity tariff schedule as determined by the regulator end-September 2019. Under the condition, it is expected that the electricity prices will be more surged.
The IMF also said that the Govt has to prepare a comprehensive circular debt reduction plan in collaboration with international partners end-September 2019.
The Fund also gave deadline to Pakistani regime on NEPRA Act. As it said that it has to submit to parliament amendments to the NEPRA Act up to end Dec 2019. According to the IMF this will be done to ensure full automaticity of the quarterly tariff. It has also to eliminate the gap between the regular annual tariff determination and notification.
The Country Report said that the Govt has to conduct and publish new audits by reputable international auditors of Pakistan International Airlines and Pakistan Steel Mills upto Dec 2019.
The IMF said that the Govt has to conduct a triage of all SOEs dividing them into companies. This is to aims to maintain under state management through privatize or liquidate up to end-September 2020.
The Govt has to submit to Parliament a new State-Owned Enterprise law to improve governance and transparency end-September 2020.
Social Protection and gender
The Govt has to finalize BISP’s banking contracts and launch financial inclusion strategy for women end-October 2019.
The IMF said that the Govt has to update the benefit structure of Waseela-e-Taleem. It has to narrow the educational gender gap end-December 2019. The Govt has to finalize the update of the BISP beneficiaries’ database by end of June 2020.
Sources said that Pakistan has to meet these conditions for getting next tranche in Sept 2019. Before the issuing next tranche, IMF and Pakistan will hold review meeting in Sept.