ISLAMABAD: The International Monetary Fund (IMF) is expected to announce its staff level agreement on Extended Fund Facility (EFF) with Pakistan by this week, according to Federal Minister for Commerce Syed Naveed Qamar on Wednesday.
In an interview with Bloomberg, he stated that “Pakistan has taken all the necessary steps to unfreeze a $6.5 billion credit line and expects to close the deal any day now.” Pakistan would receive a $1.2 billion tranche under the Extended Fund Facility following formal announcement by the Fund. He claimed that the IMF agreement would give creditors and investors peace of mind that “their money would remain protected” because “Pakistan’s economy is now stabilizing and it has taken all the right steps.”
The Minister said : “The IMF programme is the beginning, not the culmination, of all other monies flowing in.” “A pickup in imports once the nation boosts its reserves, will also benefit exports,” he added.
Pakistan authorities have taken steps including increasing taxes, cutting subsidies and devaluing its currency to meet IMF conditions, the Bloomberg reported.
It is pertinent to mention that The National Assembly on Monday passed the Finance (Supplementary) Bill, 2023, aimed to amend certain laws relating to taxes and duties.
Meanwhile, Pakistan is looking for breakthroughs in agriculture and information technology during the first ministerial level meeting of a U.S.-Pakistani trade and investment body in seven years, Pakistan’s commerce minister said on Tuesday.
Commerce Minister Syed Naveed Qamar would meet with U.S. Trade Representative Katherine Tai and other senior U.S. officials under the U.S.-Pakistan Trade and Investment Framework Agreement (TIFA), said a press release issued here.
Qamar told the meeting would strengthen ties between the two countries that had been strained in recent years by political tensions, and could help boost bilateral trade in goods and services, which the Pakistani embassy said now totalled about $12 billion.
“It is important that we start talking,” he said. “These were supposed to be annual meetings, but for one reason or another, they have been on the back burner for so long.
“Now that we are starting, there are many areas where we expect some breakthroughs, and that is on both sides.”
No comment was immediately available from Tai’s office, which included the meeting in its public calendar.
Qamar said Pakistan was looking to increase its exports of mangoes to the United States, and ensure smooth, increased trade in information technology and computer programming services.
The U.S. side was looking to boost exports of beef and soybeans.
“When we talk about trade, we’re talking about the entire spectrum, but we’re focusing on these things because that’s where things would start happening right away,” he said.
Pakistan also hoped to attract more U.S. investment, with a particular focus on IT and pharmaceuticals, after a long lull during which China became the dominant investor, he said.
“What we don’t want is for one country to have an open field. We want that this should be an open competitive environment,” he said.
Pakistan was well-placed to help diversify U.S. supply chains that were dependent on China before COVID-19, but have started to shift toward other regional suppliers. It could serve as a gateway to Central Asia, Qamar said.
