ECC approves draft Transaction Advisory Agreement,

Finance Minister Ishaq Dar on Thursday claimed all technical-level discussions with the International Monetary Fund (IMF) on reaching a staff-level agreement are over.

However, this time, the minister refrained from giving a timeline on when the deal will be inked.The IMF wants written commitments by friendly countries for financing Pakistan before materializing the staff-level agreement.The staff-level agreement for the revival of a crucial $7 billion Extended Fund Facility has been stalled for months.

During a question-answer session in the Senate, Mr Dar reiterated that the country would not default on its external payment obligations.“There is no question of a default. Pakistan will manage its responsibilities, and make every payment on time,” he insisted.

The minister’s comments come a day after Minister of State for Finance Dr Aisha Ghaus-Pasha said the staff-level agreement on the 9th review was taking time because the IMF wants to independently verify financing commitments from friendly countries, including Saudi Arabia and the United Arab Emirates.The Senate was informed on Thursday that the foreign exchange reserves stand at about $10 billion and the target is $13 billion by June this year.

Dar told the upper house during the question hour that there had been improvement in the foreign exchange reserves over the last five weeks.He further said the government has not deferred any international obligations ever since coming to power, and is making timely payments. He claimed the country’s external debt had gone down.Regarding the agreement with IMF, Mr Dar claimed the technical discussions with the lender have been completed.

Earlier,The Economic Coordination Committee (ECC) Thursday after a detailed discussion approved the draft Transaction Advisory Agreement (TASA), reached with the IFC by PCCA for the outsourcing of three airports.

Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar presided over the meeting of the ECC, said a press release issued here.

The ECC considered a summary of the Ministry of Aviation on the engagement of the International Finance Corporation as transaction advisor for the outsourcing of three airports.

It was informed that the outsourcing of three airports has been initiated within the scope of Public-Private Partnership Act-2017 to engage private investor/airport operator through a competitive and transparent process to run the airports, develop appertaining land assets and enhance avenues for commercial activities and to garner full revenue potential.

In this regard, the International Finance Corporation (IFC), a part of the World Bank Group, has been qualified as a transaction advisor.

The ECC also considered and approved the following summaries submitted by the Ministry of Energy (Petroleum Division);
Approved Declaration of Commerciality and Field Development Plan over Hilal and Iqbal discoveries in favour of M/s Mari Petroleum Company Limited (MPCL).