IMF begins Pakistan review talks, seeks targeted fuel relief

ISLAMABAD: Formal talks between Pakistan and the International Monetary Fund (IMF) on the fourth review of the Extended Fund Facility (EFF) and the third review of the Resilience and Sustainability Facility (RSF) have begun, with the IMF mission led by Iva Petrova.
The talks will assess Pakistan’s progress under the IMF programme and review the implementation of economic reforms and agreed targets. Discussions will also cover the third review of the RSF programme.
The IMF mission has urged the government to ensure that fuel relief provided in response to increased economic pressure following the escalation of the Middle East conflict remains targeted at deserving households, according to sources. The mission suggested using the Benazir Income Support Programme (BISP) mechanism for this purpose.
The mission also expressed concern over Pakistan’s continued failure to meet spending targets for the education and health sectors. According to sources, combined spending on education and health during the last fiscal year remained around Rs370 billion below the target of nearly Rs3.5 trillion.
The IMF has also sought an explanation for an Rs853 billion statistical discrepancy in the accounts of the federal and provincial governments and asked what measures would be taken to address the issue.
Finance Minister Senator Muhammad Aurangzeb held an online meeting with the IMF mission on Tuesday and reaffirmed the government’s commitment to continued cooperation with the Fund.
According to sources, Aurangzeb responded to concerns and objections raised by the IMF mission chief, although details of his response were not immediately disclosed.
The IMF review is part of Pakistan’s ongoing $7 billion EFF programme, while the current mission is also reviewing Pakistan’s progress under the RSF arrangement.