- IMF mission likely to to stay in Islamabad till Wednesday.
- Top official hopeful for SLA signing during ongoing week.
- Govt amends SOEs policy in line with IMF conditions.
ISLAMABAD: The International Monetary Fund (IMF) mission and Pakistani authorities have kicked off discussions on the Memorandum of Financial and Economic Policies (MEFP), with a potential Staff-Level Agreement (SLA) in sight this week.
The visiting IMF mission is expected to stay in Islamabad till Wednesday (tomorrow). Both sides have kick-started discussions on the MEFP with efforts to evolve consensus on the outstanding points leading towards striking an SLA within the next few days, according to The News.
The SLA could be signed by the end of the ongoing parleys if consensus is achieved, but if it does not happen, then the pending issues will be resolved in the virtual talks for signing the staff-level agreement. “We are hopeful that the SLA is expected to be signed within this ongoing week by next week,” said one top official who is privy to ongoing talks between the two sides.
The persistent Gulf war between US and Iran and its impact on the Pakistan’s economy in the wake of slowing down of the economy, hiking in prices of fuel both petroleum and gas and the IMF’s demands for adjusting the exchange and policy rates could pose risk to the economy for continuation of stabilisation mode in months and quarters ahead of the ongoing fiscal year.
In line with the IMF conditions, the government has amended the State-Owned Enterprises (SOEs) (Ownership and Management) Policy, 2023 and incorporated that following change, stating for the SOEs Act, 2023, “International Financial Reporting Standards” shall mean, for all SOEs, the Financial Reporting Standards as notified by the Securities and Exchange Commission of Pakistan (SECP) from time to time, under section 225 of the Companies Act, 2017.
Provided that for entities regulated by the State Bank of Pakistan (SBP), the statutory financial reporting framework prescribed by the SBP under the Banking Companies Ordinance 1962, including but not limited to circulars, directives, or instructions issued thereunder, shall take precedence and such instructions shall prevail to the extent of any inconsistency.
In implementing IFRS, any modifications or exemptions granted by the SECP for companies in general under Section 225 of the Companies Act, 2017 shall apply to the SOEs registered with the SECP under the Companies Act, 2017.
Provided that nothing in this provision shall be construed to affect the statutory powers, functions, or instructions of the SBP in relation to entities regulated by it and shall have an overriding effect as mandated under the SBP Act, 1956.
The Finance Division, in consultation with the Auditor General of Pakistan, is mandated to issue a detailed framework for financial management of statutory SOEs. All SOEs will establish internal audit procedures and mechanisms as required under sections 19 and 20 of the Act.
