Some facts about IMF loan
WASHINGTON: A team of experts from the International Monetary Fund will visit Islamabad in November for talks with Pakistani officials, says Finance Minister Abdul Hafiz Shaikh.
The finance minister told a select gathering at the Pakistan embassy on Saturday night that while Pakistan was not seeking another loan from the IMF, it would continue to hold Article IV consultations with the organisation.
The IMF consults annually with each member government. Through these contacts known as Article IV consultations, the IMF attempts to assess each countrys economic health and to forestall future financial problems.
The fund also operates a department that provides training in macroeconomic analysis and policy formulation for officials of member countries and Pakistan intends to continue those technical ties as well. These would include technical assistance for debt management, provincial financing and tax policy and distribution, Mr Shaikh said.
The finance minister arrived in Washington last week to attend IMF and World Bank meetings and to explore future ties with the IMF despite a decision to not seek a new loan. Mr Shaikh said that since Pakistan had not fulfilled some of the conditions included in the current loan arrangement, which expires on Sept. 30, and also because of an increase in its comfort level, Islamabad decided not to seek another loan.
But experts travelling with the finance minister said Pakistan might seek a new loan arrangement later if it felt the need to do so.
IMF officials say that Pakistan does not meet the economic criteria that qualify a country for loan.
In the past, US political support helped Pakistan make comfortable arrangements with international financial institutions but this year the Americans appear reluctant to provide that support.
The Pakistanis have apparently been told that if they qualify for a loan on the basis of their economic performance, the Americans will not oppose it but they will not go out of their way to bail out the country, said a source.
IMF team to visit Pakistan in November, says minister | Newspaper | DAWN.COM
WASHINGTON: A team of experts from the International Monetary Fund will visit Islamabad in November for talks with Pakistani officials, says Finance Minister Abdul Hafiz Shaikh.
The finance minister told a select gathering at the Pakistan embassy on Saturday night that while Pakistan was not seeking another loan from the IMF, it would continue to hold Article IV consultations with the organisation.
The IMF consults annually with each member government. Through these contacts known as Article IV consultations, the IMF attempts to assess each countrys economic health and to forestall future financial problems.
The fund also operates a department that provides training in macroeconomic analysis and policy formulation for officials of member countries and Pakistan intends to continue those technical ties as well. These would include technical assistance for debt management, provincial financing and tax policy and distribution, Mr Shaikh said.
The finance minister arrived in Washington last week to attend IMF and World Bank meetings and to explore future ties with the IMF despite a decision to not seek a new loan. Mr Shaikh said that since Pakistan had not fulfilled some of the conditions included in the current loan arrangement, which expires on Sept. 30, and also because of an increase in its comfort level, Islamabad decided not to seek another loan.
But experts travelling with the finance minister said Pakistan might seek a new loan arrangement later if it felt the need to do so.
IMF officials say that Pakistan does not meet the economic criteria that qualify a country for loan.
In the past, US political support helped Pakistan make comfortable arrangements with international financial institutions but this year the Americans appear reluctant to provide that support.
The Pakistanis have apparently been told that if they qualify for a loan on the basis of their economic performance, the Americans will not oppose it but they will not go out of their way to bail out the country,
said a source.IMF team to visit Pakistan in November, says minister | Newspaper | DAWN.COM
