Islamabad: The Finance Secretary, Dr Waqar Masood has said that an
IMF delegation will reach Islamabad on November 12 to review the
financial condition of the country under Article IV.
He said the
IMF team has no apprehension on the law and order situation in
Pakistan, as earlier it had shown some hesitation to visit the country
due to Abbotabad operation against Al-Qaida Chief Osama Bin Ladin.
The
delegation would consider the fiscal problems being faced by Pakistan,
availability of funds and macro-economics analysis. An organisation with
the name of IMF Institute is imparting training tot the financials
managers of every member country.
Pakistan had rejoined the
programme of IMF in 2008 under temporary arrangements. At that time the
IMF put hard conditions on Pakistan including financial reforms
including Reformed General Sales Tax (RGST), which were to be imposed
from 2009 but the government was reluctant to implement the RGST as the
rulers thought that it would politically harm them. The IMF extended the
deadline twice for one year each.
When the government could
neither bring fiscal reforms nor introduce RGST by June 2011, the IMF
had stopped two installments of loan and finally the Fund said good-bye
to Pakistan in September 2011 despite the fact that Pakistan was
desirous to prolong IMF’s programme in future.
The government
exhibited the people that Pakistan quitted IMF but as a matter of fact
it was the IMF that left Pakistan’s support due to non-implementation of
financial reforms in the country.
Under Article IV of its
Articles of Agreement, the IMF has a mandate to exercise surveillance
over the economic, financial and exchange rate policies of its members
to ensure the effective operation of the international monetary system.
The IMF’s appraisal of such policies involves a comprehensive analysis
of the general economic situation and policy strategy of each member
country. The IMF economists visit the member country, usually once a
year, to collect and analyse data and hold discussions with government
and central bank officials. Upon its return, the staff submits a report
to the IMF’s Executive Board for discussion. The Board’s views are
subsequently summarised and transmitted to the country’s authorities. Online
