WASHINGTON: The International Monetary Fund( IMF) said it’s awaiting World Bank and UNDP’s assessment report and the profitable desolation as a result of unknown flooding in the country to determine how it can help Pakistan.
The global lender also participated that it would shoot a charge in November to Pakistan after the periodic meetings as part of medications for the coming review. still, the Fund said it’ll stay for the assessment of the damages that the World Bank and UNDP are conducting at the moment.
” We’re staying for the assessment of the damages that the World Bank and UNDP are conducting to see what are the impacts on public finance and the impact on the frugality and on the society,” IMF’s Director of the Middle East and Central Asia Department Jihad Azour said in a press briefing in Washington on Thursday.
” We were burdened by the loss of mortal as well as also livelihood in Pakistan with the flood tide and we presented, and we reiterate our condolences for the people of Pakistan. The Fund has been veritably probative of Pakistan over the last period. We’ve a programme with Pakistan that has been extended and increased in size.”
Azour said the Fund has done this to help Pakistan deal with the convergence of shocks starting with the Covid- 19 extremity where it handed the country with fresh inflexibility.
” We had lately completed a review that handed Pakistan with$1.2 billion,” he said.
The IMF director said that the global lender will see how it could help Pakistan grounded on the WB and UNDP assessment. He said the Fund would modernize its figures and grounded on its discussion with the authorities, it would also hear to them about their precedences.
” subvention that’s targeted to support certain particulars has proved not to be veritably effective. I would say it has proved to be veritably accumulative,” he said.” In our indigenous profitable outlook, we’re again looking at this issue that’s showing that this isn’t the stylish way to use the veritably limited financial space that exists.”
Because of this, the Fund encourages Pakistan and other countries to discontinue untargeted subventions that are a waste of coffers, he said. He also stressed that the IMF encourages countries to devote these coffers to those who need them most.
The IMF director said it’s veritably critical to reallocate coffers for those who need them the most given the fact that challenges are mounting and the increase in prices is hurting. This isn’t part of IMF conditions, but it’s demanded to give the right protection to those who need it during a time of high affectation, he said.
Decision to cut POL prices in line with IMF conditions?
reflections of the IMF director came after Pakistan slashed the prices of petroleum products on October 1. The IMF functionary holds that giving subventions on select particulars iscounter-productive.
The recently appointed finance minister Ishaq Dar largely cut the price of petrol by Rs12.63 per litre, giving relief to the affectation- stricken people of the country.
Addressing his maiden press conference as the finance minister, Dar said that the decision to reduce the prices of petroleum products has been taken after discussion with Prime Minister Shehbaz Sharif.
Dar’s decision to whittle down the POL prices sparked debate about whether the move is in line with the IMF deal. The former finance minister Miftah Ismail also nominated the decision a’ reckless’ move.
Amid the contestation, the minister has traveled to Washington to attend the IMF’s meetings, seeking to revise the macroeconomic frame.
“ Pakistan’s Minister for Finance Ishaq Dar will share in the forthcoming periodic meeting of the IMF/ World Bank, ” a top functionary of the finance ministry verified while talking to The News on Wednesday.
In an earlier statement, the IMF had said that policy commitments made by the Pakistani authorities as part of the seventh and eighth reviews under their support program continue to apply.