ISLAMABAD

The executive board meeting of the International Monetary Fund (IMF) would meet tomorrow (Wednesday) in Washington for the fourth and fifth reviews under the extended arrangement and request for waivers of nonobservance of performance criteria of Pakistan.

Pakistan is expecting to receive $1.1 billion after getting three waivers. The government in talks with Fund, held from October 29 to November 8 in Dubai, had sought three waivers on Net Domestic Assets of the State Bank of Pakistan (SBP) (end-June and end-September), government borrowing from the central bank (end-June and end-September), as well as Net International Reserves (NIR) for end-September.

“The IMF will likely to approve two tranches hopefully and $1.1 billion will be released” said Rana Asad Amin spokesperson and Advisor of the finance ministry in a brief chat with The Nation.

Pakistan had fulfilled five actions that it had to take before the scheduled IMF Executive Board meeting till November 30, Finance Minister Senator Ishaq Dar claimed in a press conference on December 2. The demands are fulfilled, he said, included increasing the Net International Reserves held by the State Bank of Pakistan, reducing net domestic assets and government borrowings. The heads of National Electric Power Regulatory Authority (Nepra) and Director General of Debt Management Office were also appointed.

The government would achieve its target of enhancing foreign exchange reserves to $15 billion after receiving two tranches worth of $1.1 billion. Currently Pakistan’s foreign exchange reserves are $13.92 billion wherein State Bank of Pakistan’s reserves stood at $9.2 billion and commercial bank reserves are $4.72 billion.

Earlier, the government held successful auction of Sukuk bonds that generated $1 billion for the national kitty.

Pakistan would eligible for loans from the International Bank for Reconstruction and Development (IBRD) that would enable it to undertake major projects after enhancing its reserves to $15 billion level.

It is worth mentioning here that Pakistan entered into IMF programme about $6.64 billion under extended fund facility on September 4 2013. Pakistan had received four tranches worth of $2.2 billion during previous financial year 2013-14.