IMF demands government to submit new report on losses of state-owned enterprises

A man walks past the logo of the International Monetary Fund (IMF) at its headquarters in Washington, US on May 10, 2018.  - Reuters
A man walks past the logo of the International Monetary Fund (IMF) at its headquarters in Washington, US on May 10, 2018. – Reuters
  • The team of the Central Monitoring Unit was asked to submit a report.
  • The fund says it will not accept reports based on old data.
  • IMF review mission will visit Pakistan from 13-16 November.

ISLAMABAD: The International Monetary Fund (IMF) has asked the Finance Ministry to submit a new report regarding losses suffered by state-owned enterprises. geo news This came to light from sources on Monday.

The fund’s mission, which is currently in Pakistan to review the country’s loan tranche, said it would not accept reports based on outdated data, sources said.

Therefore, it has demanded that the Central Monitoring Unit team submit its first updated assessment report for the first quarter of the current financial year.

The IMF review mission is currently in Pakistan to complete the first review under the $3 billion loan program and is likely to release the second tranche of $700 million by the end of December 2023. If both the parties are able to reach a compromise then this installment will be completed. Staff-level agreement at the end of negotiations.

Teams of Pakistan and IMF are currently holding technical level talks while policy level talks will be held from November 13-16 next week.

On the other hand, the Finance Ministry has sought time from the IMF to submit the report by December 2023, sources said.

In its response to the fund’s delegation, the team said the state-owned enterprises are currently under investigation and the new statistical report will be completed soon, the sources said.

IMF’s focus on Pakistan’s fiscal structure

Earlier today, The News reported that the visiting IMF mission is focused on Pakistan’s fiscal framework for the current financial year 2023-24 with a view to converting the primary deficit into surplus under the $3 billion Standby Arrangement (SBA).

The IMF is not concerned about the overall fiscal deficit rising due to rising debt repayments of Rs 1 trillion for the current fiscal year. The government plans to keep the debt service bill limited to Rs 7.3 trillion, but the IMF has estimated it could rise to Rs 8.3 trillion by the end of June 2024.

Primary surplus means the deficit will be calculated excluding debt service as principal and mark-up amount required on domestic and foreign loans.

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