KARACHI: Inter­national Monetary Fund (IMF) Resident Repre­sentative for Pakistan Esther Perez Ruiz has said that discussions between Islamabad and the international lender on the 9th review of the $7 billion Extended Fund Facility had been ‘productive’ so far, Dawn.com reported on Wednesday.

Pakistan entered a $6bn IMF programme in 2019, which was increased to $7bn earlier this year. The programme’s 9th review is currently pending with remote talks being held between IMF officials and the government for the release of $1.18bn.

“Discussions to date in the context of the 9th review have been productive, and have enabled a revision to the macroeconomic outlook post floods as well as an in-depth evaluation of fiscal, monetary, exchange rate, and energy policies adopted since the completion of the combined 7th and 8th reviews,” Ruiz told Dawn.com.

She added that the IMF “looks forward to continuing the dialogue over policies that adequately address the humanitarian and rehabilitation needs from the floods while also preserving fiscal and external sustainability given available financing”.

Finance Minister Ishaq Dar addressed the delay in the 9th IMF review again on Wednesday, stressing the need for Pakistan to complete the programme.

Speaking at the Second Pakistan Prosperity Forum, he said: “I don’t blame the fund, but let me say that the 9th review in totality — all performance criteria are in order. Had they come in October and reviewed, the 9th review would have been over.”

“I don’t want to indulge in global politics, but I did request them to come in late October or early November. They chose not to,” Mr Dar added.

The finance minister, however, also acknowledged that Islamabad had created a “credibility gap” between the two parties.

“Once you commit to agreed conditionalities … you should implement them,” he said, asserting that a party was “ethically” and contractually“ bound to implement conditions agreed between two sides.

After agreeing “on a roadmap [with the IMF], your country and the previous government chose not to implement [the agreed conditions] and reversed what they had done earlier.

“That has created a credibility gap.”

In light of this experience, the finance minister added that the IMF now wanted the government to share with them plans for the next three quarters.

Moreover, he said, the IMF also required the government to demonstrate how it would meet the needs of $16bn for flood reconstruction and rehabilitation.

“Reconstruction and rehabilitation [efforts] are going to take five to seven years and to worry about it now — I won’t say that beggars are not choosers but lenders have their own wish list,” Mr Dar remarked, adding that he wanted to complete the programme.

“Let Pakistan have the credit for completing the programme for the second time … I wish for the credibility of Pakistan that we complete this programme.“I may personally disagree with many things, but I am trying to provide everything and anything. My team is at it.”

Published in Dawn, December 15th, 2022