IMF Loan Tranche In First Half Of Aug, Hopes Miftah.

ISLAMABAD -- Finance Minister Miftah Ismail on Wednesday said that international Monetary Fund (IMF) would approve the loan tranche for Pakistan in the earlier part of the next month (August), as the government has met all prior actions.

Addressing a seminar here, finance minister said that IMF's Executive Board would likely to meet in later part of the August due to their holidays. However, the government is hoping that the Board would meet in earlier part to approve loan tranche for Pakistan. He once again clarified that the government has averted default and our priority at the moment is keep the country on the straight path of stability. He explained that the government has met all prior conditions of the IMF including increasing electricity and imposing petroleum levy on oil products, signing MoUs with the provinces and passage of the budget.

Miftah Ismail said that law on anti-corruption was not prior actions of the IMF but it was a structure benchmark. The government would form a high level commission on it, which would comprise of experts from the two least corrupt countries of the world, Singapore and New Zealand, along with some local experts. He said Pakistan will get about $4 billion from the IMF, which has extended its loan programme for Pakistan for next one year. He informed that IMF is projecting $4 billion financing gap for Pakistan. However, the government would bridge the gap with the help of friendly countries.

Finance minister said that some friendly countries would invest in government's shares, which are already traded in the Karachi Stock Exchange. He clarified that 'we are not selling the ownership and the management stakes of these companies.' The government also wanted to sell out Balloki and Haveli Bahadur Shah Power Plants, he added. Pakistan would also receive oil and gas on deferred payment facility from friendly countries.

Talking about economic situation, he pointed out that there has been remarkable contraction in imports during the current month. From next month, he was confident that the inflows of dollar will be more than the outflows. He said this will reduce pressure on the rupee.

Miftah Ismail has also shared the government's vision to reform state-owned enterprises (SOEs). 'There are two basic things we need to work on, that is to come up with better laws and better ways to privatise State Owned Enterprises (SOEs), and to improve their governance,' he added. He informed that...