ISLAMABAD: Pakistan and the International Monetary Fund (IMF) have yet to finalise a staff-level agreement, though IMF officials acknowledged substantial progress in negotiations under the 37-month Extended Fund Facility (EFF).
While Pakistani authorities expressed optimism about reaching a broader agreement, frequent shifts in policy decisions created hurdles, ultimately preventing the conclusion of the staff-level agreement at this stage.
“As the statement from the IMF reads, programme implementation has been strong. We have made good progress in our discussions while the Mission was here and will continue with result-oriented consultations in the coming weeks,” said Minister for Finance Mohammad Aurangzeb in a brief reply when asked about the reasons behind the inability to reach a staff-level agreement with the IMF on Saturday.
The frequent shifting of goalposts created differences in reaching a consensus. At one point, when consensus seemed achievable, it was claimed that the political leadership might not accept the harsh conditions. Ultimately, the IMF chose to return to Washington, DC, without finalising a staff-level agreement.
