The country would be able to receive $1.1 billion on account of two instalments if the waiver was granted by the Fund Executive Board, as a discussion on the fourth review remained inconclusive due to government failure to comply with the agreed performance benchmarks. As a result, the country was unable to receive fifth instalment of $555 million. The two sides agreed to hold simultaneous discussions on fourth and fifth reviews.
A staff-level mission led by Jeffery Frank in a statement issued at the conclusion of combined fourth and fifth reviews stated that Pakistan has missed targets on Net Domestic Assets of the State Bank of Pakistan (SBP) (end-June and end-September), the government borrowing from the central bank (end-June and end-September), as well as Net International Reserves (NIR) for end-September. The government has requested for a waiver on the missed targets during discussion on mandatory fourth and fifth reviews of EFF held at Dubai from October 29 to November 8, 2014.
The IMF has also urged the authorities to deepen their structural reform agenda to improve Pakistan's competitiveness in global markets. In the energy sector, declining world oil prices and the expected start of imports of liquefied natural gas provide an opportunity to improve energy supply and continue tariff reforms while containing a price hike. High priority needs to be placed on enhancing governance and efficiency of energy firms, and in strengthening the capacity of regulatory bodies. The mission supports the government's strategic private partnership agenda and encourages stronger reform efforts in improving the business climate, added the Fund statement.
Finance Minister Ishaq Dar at a recent media briefing, had expressed optimism that Pakistan would receive $1.1 billion on account of two instalments from the IMF by the end of December. The IMF has projected that Pakistan would require a gross financing of 29.2 percent of the GDP to meet the maturing debt obligations and to finance the budgeted fiscal deficit of 4.7 percent in the current fiscal year. An official said any shortfall in revenue collection would increase the financing requirements.