IMF clears final payment in Pakistan's 3-year $6.4b programme

Dubai - Pakistan is expected to get the 12th tranche amounting to $102 million in the next couple of weeks

The International Monetary Fund (IMF) has successfully completed the 12th and final review of Pakistan's economic programme supported by a three-year $6.4 billion loan programme.
This was announced during a joint news conference in Dubai that was addressed by Finance Minister Ishaq Dar and IMF Mission chief Harald Finger.
Senator Dar said that successful completion of the last review was an indicative of government's strong commitment in implementing difficult structural reforms in the areas of taxation, energy, monetary/financial sectors and public sector enterprises.
Finger said: "After productive discussions, the mission and the Pakistani authorities have reached staff-level agreement on the completion of the twelfth and final review under the EFF arrangement. The agreement is subject to approval by the IMF Management and the executive board."
Pakistan is expected to get the 12th tranche amounting to $102 million in the next couple of weeks after IMF management approval.
"[Pakistan] growth is expected to reach five per cent in FY 2016/17, supported by buoyant construction activity, strengthened private sector credit growth, and rising investments, particularly related to the China Pakistan Economic Corridor (CPEC). Nevertheless, continued global slow-down and declining exports are weighing on growth prospects. Average inflation is expected at around 5.2 per cent in FY 2016/17, remaining well-anchored by continued prudent monetary policy. Gross international reserves reached $18.1 billion at end-June 2016, covering over four months of prospective imports."
Talking about the overall programme performance of Pakistan, the minister said: "Our performance throughout the programme culminating in the twelfth review has been highly satisfactory."
Pakistan achieved real GDP growth rate of 4.71 in FY 2016, which is the highest in the last 8 years. Since FY2014, the country maintained GDP growth rate of above 4 per cent. For the next fiscal year, GDP growth is targeted at 5.7 per cent which will be gradually steer to 7 per cent in FY 2017, according to Dar.
The minister mentioned that inflation remained contained to less than 3 per cent at 2.89 per cent during the period FY 2016 as compared to 8.62 per cent in FY 2014 and 4.53 per cent in FY 2015.
Regarding tax collection in the country, he mentioned that Federal Board of Revenue not only achieved its annual target of Rs3,104 billion but exceeded it. This indeed is a remarkable achievement as no downward revision was made in FBR revenue targets and the originally fixed target was achieved and exceeded, he informed.
- abdulbasit@khaleejtimes.com