Ishaq Dar 'clears the air' about IMF deal, last-minute cancellation of his US visit
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Pakistan is member of World Bank, and not a beggar
ISLAMABAD (Dunya News) – Finance Minister Ishaq Dar on Saturday said he had called off the visit to the US for holding talks with the International Monetary Fund (IMF) on the directions of Prime Minister Shehbaz Sharif.
Addressing a presser, he said he would participate in the meeting virtually. “There are different speculations about the cancellation of my visit to the US with some claiming that the IMF has refused to hold negotiations,” he added. The IMF, he said, could not refuse him.
He said Pakistan was a member of the World Bank and not a beggar.
The minister went on to say that he had to leave for the US today (Saturday) morning for tomorrow’s talks adding that the IMF held annual spring meeting in April. “It is not suitable to do a loose talk on a critical national issue,” he added.
Mr Dar said the country did not delay any international payment despite financial hurdles adding that the staff-level agreement (SLA) with the IMF was about to be inked. “A friendly country has assured the IMF of paying $2billion while we are waiting for the other to assure payment of $1billion,” he added.
The FM alluded that the Ministry of Finance was responsible for finances adding that the Supreme Court had ordered the federal government to release Rs21 billion for Punjab elections until April 10. “The court also directed the ECP to apprise it of development on the release until April 11,” he added.
Earlier, the minister had confirmed the cancellation of his official visit to the US, saying the delegation would proceed without him, raising speculations on the long-standing SLA with the IMF.
Federal Minister for Economic Affairs Sardar Ayaz Sadiq also cancelled his visit.
Sources told that the minister won't lead the delegation to the US in the backdrop of the prevailing political crisis in the county. Dar was also scheduled to attend the annual spring meetings of the International Monetary Fund (IMF) and the World Bank (WB) besides conducting sideline meetings with the officials of the IMF and the US Treasury Department.
However, led by Special Assistant to the Prime Minister on Finance Tariq Bajwa, a technical delegation comprising officials of finance and economic affairs divisions and the State Bank of Pakistan's governor will proceed to participate in the annual meetings of the global financial institutions from April 10 to 16.
In order to unlock the $1.1 billion next tranche of the $7billion loan, the lender required Pakistan to increase levies on petrol, diesel, and gas; decrease circular debt and reform the power sector; collect up to $5 billion in funds from friendly countries; introduce a mini-budget to increase taxes; make public departments profitable; ensure compliance on privatisation scheme; and continue market-based exchange rate policy.
Mr Dar had claimed that the agreement was around the corner on different occasions whenever the country met conditions “recommended” by the IMF. Last month, China rolled over China rolled over a $1.3billion loan to Pakistan, thus helping the country fulfil the last pre-agreement condition. Moreover, the Industrial and Commercial Bank of China (ICBC) had also approved a rollover of $1.3 billion loan for cash-strapped Pakistan and the country was expecting to receive another installment of $300 million from Chinese commercial banks in the coming days which would help increase the level of foreign exchange reserves.
However, later, it turned out that the confirmation of financial support from Saudi Arabia and the United Arab Emirates (UAE) would lead to the signing of the SLA between Pakistan and the IMF, sources said.
Pakistan and the IMF, earlier, could not reach an SLA as talks between the government and global lender ended.
In the talks, actions and advance measures were agreed with the IMF mission asking for more time to strike a staff-level agreement after approval from Washington. “There will be a staff-level agreement which is expected in the next few days”, PM Shehbaz had claimed weeks ago.
