ISLAMABAD, March 19: The Executive Board of the IMF will meet in the first week of May this year to approve sixth disbursement of $117 million tranche to Pakistan under Poverty Growth Facility (PRGF).

Official sources claimed that the mission headed by Klaus Enders, Assistant Director in the Middle East Department has given a clean bill of health to the Pakistani economy after about ten days of tour to the country.

Pakistan had earlier received fifth tranche of about $117m on March 17, out of $1.4 billion three years PRGF programme.

An IMF staff team here on Wednesday completed the Islamabad portion of the discussion with the authorities for the fifth review of Pakistan’s economic programme that is supported under the IMF’s Poverty Reduction and Growth Facility (PRGF).

According to a statement issued by the local IMF office, the staff and the authorities will continue discussions during the second week of April in Washington on the occasion of the Spring Meeting at the IMF.

The mission team reconfirmed the positive macro-economic outlook. The economic growth target of 4.5 per cent is well within reach. Inflation remains under control at less than 4 per cent. Official foreign reserves exceed $9 billion. All quantitative performance criteria for end-December 2002 were observed, including the CBR revenue target and the fiscal deficit was well contained.

The staff team and the authorities agreed on the challenges ahead. These include coping with the economic repercussions of the uncertain situation in the Middle East while preserving rules-based system for energy pricing.

The team said that WAPDA and KESC losses, arising in large part from continued high line losses and non-payment by consumers in FATA, should be brought down to reduce the power utilities’ drain on the budget and ensure the targeted increase in expenditures on poverty reducing and human development outlays, while containing the deficit in order to reduce public debt.

Over the coming weeks, the authorities intend to establish a framework for the forthcoming budget (fiscal year beginning July 2003) that supports private sector-led growth while consolidating financial stability and public debt reduction.