Pakistan Receives IMF Draft of Memorandum of Economic and Fiscal Policies
By The Federal Minister for Finance Ishaq Dar has confirmed that Pakistan has received a Memorandum of Economic and Fiscal Policies (MEFP) along with a Letter of Intent from the International Monetary Fund (IMF). He declared an extra Rs. 170 billion in taxes so that the lender's program could be accomplished, thus allowing them to receive more than $1.1 billion for the bailout.[0]
The Pakistan minister confirmed to the press that the nation has acquired the draft of the Memorandum of Economic and Financial Policies (MEFP) from the International Monetary Fund (IMF) in Washington. Dar said some IMF-advised reforms in Pakistan's favour are needed and Prime Minister Shehbaz Sharif has assured the IMF that the government would implement them.[1]
The IMF mission chief said that “virtual discussions” will continue between the two sides in the coming days to finalise the implementation details of the policies.[2] The IMF in its concluding statement said, “The IMF team welcomes the prime minister's commitment to implement policies needed to safeguard macroeconomic stability and thanks the authorities for the constructive discussions.”[0]
The IMF made it clear that the timely and decisive implementation of these policies along with resolute financial support from official partners are critical for Pakistan to successfully regain macroeconomic stability and advance its sustainable development.[3]
Dar accused the prior government of causing the credibility gap, asserting that the IMF does not have faith in Pakistan because not only did the nation fail to carry out reforms, but also reversed them when the no-confidence motion arose.[4]
At the beginning of his press conference, the Finance Minister reminded the public that the government is executing a plan agreed upon by former Prime Minister Imran Khan and the IMF in 2019-2020.[4] He restated that the government headed by Shehbaz Sharif is discussing this agreement as a “sovereign obligation”.[4]
The minister discussed the precarious state of foreign exchange reserves, stating that obligations to friendly countries would be honored and inflows would be acquired.[4]
He confirmed that they had received the MEFP draft at 9 am on this Friday.[5]
In accordance with the usual protocol, a Memorandum of Economic and Financial Policies (MEFP) and a Letter of Intent[6] The draft of the MEFP was obtained by the government this morning, and it will be reviewed over the weekend. A virtual meeting with the IMF has been planned for Monday following that, he noted.[3]
0. “Govt to Impose Rs. 170 Billion ‘Mini-Budget’ for IMF Deal: Dar” ProPakistani, 10 Feb. 2023, https://propakistani.pk/2023/02/10/govt-to-impose-rs-170-billion-mini-budget-for-imf-deal-dar
1. “Pakistan: IMF forces govt for BIG increase in tax rates as Pakistani population starves” Firstpost, 11 Feb. 2023, https://www.firstpost.com/world/pakistan-imf-forces-govt-for-big-increase-in-tax-rates-as-pakistani-population-starves-12139042.html
2. “Pakistan has received MEFP draft from IMF: Ishaq Dar” ARY NEWS, 10 Feb. 2023, https://arynews.tv/pakistan-has-received-mefp-draft-from-imf-ishaq-dar/
3. “Pakistan govt agrees to IMF conditions, to get SDRs worth $1.2 billion: Finance Minister Ishaq Dar” Business Today, 10 Feb. 2023, https://www.businesstoday.in/latest/world/story/pakistan-govt-agrees-to-imf-conditions-to-get-sdrs-worth-12-billion-finance-minister-ishaq-dar-369762-2023-02-10
4. “Dar announces Rs170b taxes in mini-budget to seal IMF deal” The Nation, 11 Feb. 2023, https://www.nation.com.pk/11-Feb-2023/dar-announces-rs170b-taxes-in-mini-budget-to-seal-imf-deal
5. “Rs170bn taxes to be imposed before mini-budget, says Dar” Profit by Pakistan Today, 10 Feb. 2023, https://profit.pakistantoday.com.pk/2023/02/10/rs170bn-taxes-to-be-imposed-before-mini-budget-says-dar
6. “Rs170bn in taxes to be imposed through mini-budget prior to IMF deal: Ishaq Dar” Geo News, 10 Feb. 2023, https://www.geo.tv/latest/470088-finmin-ishaq-dar-addresses-media-after-imf-statement-on-talks
