IMF review mission shifts venue

KARACHI - The International Monetary Fund mission is not coming to Pakistan due to security reasons and the fund would conduct the review of the economic performance of the country in Dubai. The IMF and the government teams are scheduled to meet in Dubai for 10 days to discuss the economic performance and the targets envisaged in the IMF bail-out package involving 7.6 billion dollars loans, official sources told The Nation on Sunday. The IMF and the Pakistan government officials are scheduled to stay in Dubai from February 14-24 to discuss the economic performance, said sources. The IMF officials are not coming to Pakistan this time due to security reasons and the fund and the government have decided to discuss the performance review in Dubai, said sources. A 6-7 members team of Pakistan government, to be led by Prime Minister's Adviser on Finance Shaukat Tarin would depart for Dubai according to the mutually agreed schedule. Governor State Bank of Pakistan Syed Salim Raza, Special Secretary, Ministry of Finance Dr Ashfaque H. Khan, Secretary, MOF, Dr Waqar Masood and some other officials would hold talks with IMF on the economic performance. Official sources said that the government had already achieved the key economic targets, set in the Stand-by Facility of the IMF for the second quarter of the ongoing fiscal. The government team would be comfortable in holding talks with the IMF on the economic performance review because of the achievement of the target, said sources. The fund would release close to 800 million dollars worth second tranche of the 7.6 billion dollars Stand-by Facility that was approved in November last year when the country was facing the threat of default. Sources, however, said that the Pakistan government's team could request the IMF to enhance the quota of facility. The fund, said sources, had given 8 times quota or above this level to different countries as bail-out package, while the IMF had given only 5 times of the quota to Pakistan. Sources said that the purpose of seeking more quota from the fund was to further stabilise the foreign exchange reserves of Pakistan this year. In November last year the national foreign exchange reserves of the country fell around 6.6 billion. The reserves with the central bank squeezed to 3.10 billion dollars that were hardly enough to foot the one-month imports bill at that time. However, the disbursement of the bail-out package by the IMF and some measures with the government had inflated the reserves to 10.20 billion dollars. Official sources said that the reserves and the economy would show more improvement this year because of increased disbursement of loans by the donors, increased inflow of remittances, foreign investment, decline in imports bill and international prices of major items.

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