The International Monetary Fund (IMF) announced on Monday that it would conclude its visit to Pakistan earlier than planned due to increased security concerns amid regional conflict.
It will now conduct virtual discussions from Turkey to finalise a staff-level agreement for the upcoming loan tranches valued at $1.2 billion.
The mission departed Pakistan shortly after its initial in-person meeting with Finance Minister Muhammad Aurangzeb on Monday morning.
Pakistan placed at Level 3 amid security concerns
This development occurred a day after the United States released a security advisory categorising Pakistan at Level 3, urging its citizens to reconsider travel plans.
The US government has recommended that its citizens reassess travel to Pakistan and “exercise caution, avoid large gatherings,” while designating certain areas as Level 4, which are deemed off-limits for travel.
The IMF’s Resident Representative for Pakistan, Mahir Binici, also stated, “An IMF mission led by Iva Petrova has commenced discussions with officials in Karachi and Islamabad regarding the third review of Pakistan’s Extended Fund Facility (EFF) arrangement and the second review of the Resilience and Sustainability Facility (RSF).”
Binici indicated that the “discussions will continue to be conducted virtually.”
Officials from the Finance Ministry mentioned that the IMF team would engage in virtual discussions from Turkey, expressing hope that this change would not adversely affect the programme review negotiations.
The IMF mission had been in Pakistan from February 25 until March 11.
US Israeli attacks on Iran escalate regional conflict
However, due to the “illegal and unprovoked” attacks by the United States and Israel on Iran, the conflict has escalated in the Middle East region.
Demonstrators have also marched towards US missions and consulates in Pakistan, leading to the deaths of several protesters and damage to public property.
Sources reported that Pakistan’s interior minister had guaranteed full security for the IMF mission, yet it ultimately opted to cancel the in-person meetings.
Planned meetings canceled after IMF mission exits
As a result of the unexpected exit of the IMF mission, the planned meetings concerning the amendments in the Sovereign Wealth Fund, updates on e-procurements by various governments, information exchange with the National Accountability Bureau (NAB), and the removal of preferential treatment for government and military-owned companies in public procurements have been cancelled.
Additionally, a meeting focused on the revenue performance of the Federal Board of Revenue (FBR) and the projections for the remainder of the fiscal year was also called off. The FBR has fallen short of its downward revised tax target by Rs432 billion for the first eight months of this fiscal year.
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