Miftah Ismail hold talks with IMF executives in Washington

ISLAMABAD: Federal Minister for Finance and Revenue Miftah Ismail held a meeting with Executive Directors of International Monetary Fund in Washington.

Minister of State Dr Ayesha Ghous Pasha, Secretary Finance and Governor State Bank of Pakistan Reza Baqir were also present in the meeting. The finance minister requested the IMF to resume the $6 billion programme for Pakistan that faced uncertainty after the PTI government walked back on some of the pledges it made in October-November 2021.

Miftah Ismail arrived in Washington on Thursday evening to attend the spring meetings of the World Bank and IMF to discuss the continuation of a bailout package. The Pakistan Embassy in Washington said he will spend four days in the US capital and hold bilateral meetings with US officials.

Miftah Ismail held a meeting with US-Pakistan Business Council. He also met with representatives of Moody’s at Pakistan Embassy in Washington. 

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At news conference in Islamabad before departure, Ismail said the IMF wants Pakistan to end the subsidies extended by the previous government as a precondition for continuing the package. In February, the IMF released a stalled tranche of $1 billion to Pakistan, reviving the $6 billion bailout package negotiated in May 2019.

The IMF reduced Pakistan’s economic growth rate to four per cent, and predicted higher than estimated inflation and current account deficit during the ongoing fiscal year.

The growth forecast is in line with similar estimates by other development lenders such as the World Bank’s 4.3% and Asian Development Bank’s 4% and credit rating agencies Moody’s 3-4% but significantly lower than a 4.8%target set in the 2021-22 budget.