ISLAMABAD: The International Monetary Fund (IMF) and Pakistan started virtual negotiations in response to the Fund’s proposed Memorandum of Economic and Financial Policies (MEFP).
Memoranda of Economic and Financial Policies are prepared by the member country in consultation with the IMF. A memorandum outlines the measures that a government wants to undertake as part of its request for IMF financial assistance.
Pakistan returns draft MEFP
“The Fund provided us the draft MEFP. Finance Secretary Hamed Yaqoob Sheikh said that “we have expressed our opinions on it and discussed it with them.” “Communications via email has continued, but now the virtual interaction will begin.”
According to him, the Pakistani government was working with the IMF to “expeditiously complete” earlier measures and promises.
The economic coordination committee (ECC) has already authorized changes to electricity and prices as well as enhanced funding for the Benazir Income Support Programme (BISP) to accommodate inflation, according to the finance secretary.
He continued, “Other permissions are anticipated to be finished in the cabinet meeting today.
In-depth negotiations lasted 10 days in Islamabad between January 31 and February 9 between Pakistan and an IMF delegation. However, no agreement could be reached.
The IMF later clarified, however, that both parties had consented to maintain communication. Additionally, “virtual conversations will continue in the next days to clarify the implementation specifics” of the measures negotiated in Islamabad.
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The MEFP is a crucial document that outlines all of the requirements and procedures. Moreover, it outlines policy directives upon which the two parties proclaim the staff-level agreement.
The two parties discussed the proposed policy measures after sharing the draft MEFP. After the discussions, a staff-level agreement is signed and sent to the Executive Board of the Fund for approval.
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