ISLAMABAD: Adviser to the Prime Minister on Finance Shaukat Tarin on Monday announced that Pakistan and International Monetary Fund (IMF) have reached an agreement regarding the revival of the $6 billion Extended Fund Facility (EFF) and a formal accord will be signed later this week.
The advisor was addressing the launch ceremony of the Pakistan Single Window (PSW), an ambitious, wide-ranging and comprehensive reform initiative undertaken in the public sector in recent years.
“All issues have been settled with IMF, however, there is just one issue and we are seeking a legal opinion on it, while everything else is already agreed upon,” the de-facto finance minister added.
Giving details regarding the agreement, Shaukat Tarin said, “There are certain conditions in the IMF agreement that require constitutional amendments and such changes cannot be effected because we lack a two-thirds majority in the parliament.”
When asked whether the amendments were related to the State Bank of Pakistan, the adviser replied in the affirmative. Commenting on growing inflation, Tarin said inflation was a global issue, adding that “the prices of commodities in the world are not in my control”.
Shaukat Tarin stressed that the supply chain was affected due to the coronavirus pandemic, adding however that the economy was now “recovering”. “The worst seems to be over and as economies begin to recover globally, we expect business activity to resume and in fact grow at a much faster pace,” he added.
The finance adviser was in Washington last month to lead the Pakistani delegation in talks with the IMF for the revival of the $6 billion Extended Fund Facility (EFF). The accord could not be signed due to a disagreement over some conditions set by the lending agency.
The deadlock between the Pakistan government and the IMF broke after the two sides decided to show some flexibility in their respective stances on the issue of granting autonomy to the State Bank of Pakistan (SBP).
“Pakistan Single Window”
Talking about the Pakistan Single Window, he said it would not only facilitate international trade but also help accelerate the digital transformation of the public sector agencies connected to international trade.
Tarin added that PSW was in line with the vision of the government to promote competitiveness, transparency and efficiency and lauded Pakistan Customs on leading this initiative.
He said that it was a priority of the government to facilitate businesses, including small and medium-sized ones, by providing a suitable enabling environment for growth and innovation and improving their competitiveness by reducing their cost and time for doing business.
