Front Matter Page

© 2001 International Monetary Fund

April 2001

IMF Country Report No. 01/58

Pakistan: First Review Under the Stand-By Arrangement and Request for Waiver and Modification of Performance Criteria-Staff Report; Staff Statement; News Brief on the Executive Board Discussion; and Statement by the Authorities of Pakistan

In the context of the first review under the Stand-By Arrangement, the following documents have been released and are included in this package:

  • the staff report for the First Review Under the Stand-By Arrangement and Request for Waiver and Modification of Performance Criteria, prepared by a staff team of the IMF, following discussions that ended on February 25,2001, with the officials of Pakistan on economic developments and policies. Based on information available at the time of these discussions, the staff report was completed on March 19,2001. The views expressed in the staff report are those of the staff team and do not necessarily reflect the views of the Executive Board of the IMF.

  • a staff statement of March 28,2001, updating information on recent economic developments.

  • a News Brief summarizing the views of the Executive Board as expressed during its March 30, 2001, discussion of the staff report that completed the review.

  • a statement by the authorities of Pakistan.

The documents listed below have been or will be separately released.

Letter of Intent by the authorities of the member country*

Memorandum of Economic and Financial Policies by the authorities of the member country*

Technical Memorandum of Understanding*

*May also be included in StaffReport.

The policy of publication of staff reports and other documents by the IMF allows for the deletion of market-sensitive information.

To assist the IMF in evaluating the publication policy, reader comments are invited and may be sent by e-mail to Publicationpolicy@imf.org.

Copies of this report are available to the public from

International Monetary Fund • Publication Services

700 19th Street, N.W. • Washington, D.C. 20431

Telephone: (202) 623 7430 • Telefax: (202) 623 7201

E-mail: publications@imf.org • Internet: http://www.imf.org

Price: $15.00 a copy

International Monetary Fund

Washington, D.C.

Front Matter Page

INTERNATIONAL MONETARY FUND

PAKISTAN

First Review Under the Stand-By Arrangement and Request for Waivers and Modification of Performance Criteria

Prepared by the Middle Eastern Department and the Policy Development and Review Department

(In consultation with other departments)

Approved by P. Chabrier and M. T. Hadjimichael

March 19, 2001

Contents

  • List of Acronyms

  • I. Introduction and Background

  • II. Performance and Policies in July-December 2000 and Early 2001

  • III. Report on the Discussions

    • A. Macroeconomic Objectives and Policies for the Remainder of 2000/01

    • B. Structural Reforms and Social Policies

  • IV. Balance of Payments Outlook and External Financing Issues

  • V. Program Monitoring and Design

  • VI. Staff Appraisal

  • Tables

  • 1. Macroeconomic Framework, 1995/96-2003/04

  • 2. Medium-term Balance of Payments, 1998/99-2003/04

  • 3. Monetary Developments, 1995/96-2000/01

  • 4. Accounts of the State Bank of Pakistan, 1995/96-2000/01

  • 5. Summary of Consolidated Federal and Provincial Budgetary Operations, 1999/2000-2000/01

  • 6. Summary Accounts of Seven Key Public Sector Enterprises, 1995/96-2000/01

  • 7. External Financing Requirements, 1998/99-2003/04

  • 8. Summary of Public External Debt and Debt Service, 1995/96-2003/04

  • 9. Indicators of Fund Credit, 1999/2000-2007/08

  • 10. Fund Position, 1999/2000-2003/04

  • Charts

  • 1. Output and Inflation, 1996-2001

  • 2. External Sector Developments, 1996-2001

  • 3. Exchange Rate Developments, 1996-2001

  • 4. Monetary Developments, 1999-2001

  • 5. Revenue Developments, 2000-2001

  • Appendices

  • I. Fund Relations

  • II. Provincial Public Finances and the Devolution Initiative

  • III. The Authorities’ Strategy to Improve Governance

  • IV. Safeguards Assessment—Summary of Conclusions

  • V. Paris Club Rescheduling

  • Attachment

  • 1. Letter of Intent, Memorandum of Economic and Financial Policies, and Technical Memorandum of Understanding

List of Acronyms

AsDB

Asian Development Bank

CBR

Central Board of Revenue

CDNS

Central Directorate of National Savings

DBC

Dollar Bearer Certificate

DSC

Defense Savings Certificate

EFS

Export Finance Scheme

FCD

Foreign currency deposit

FIBs

Federal Investment Bonds

FIBR

Floating Interbank Market Exchange Rate

FPSC

Federal Public Services Commission

FSAP

Financial Sector Assessment Program

GFS

Government Finance Statitics

GST

General Sales Tax

HUBCO

Hub Power Corporation

IDB

Islamic Development Bank

IFIs

International Financial Institutions

IPPs

Independent Power Producers

KAPCO

Kot Addu Power Corporation

KESC

Karachi Electricity Supply Corporation

MEFP

Memorandum on Economic and Financial Policies

NBP

National Bank of Pakistan

NCBs

Nationalized Commercial Banks

NEPRA

National Electric Power Regulatory Authority

NDA

Net domestic assets

NFC

National Finance Commission

NSS

National Savings Schemes

NTN

National Taxpayer Number

NWFP

North Western Frontier Province

OGDC

Oil and Gas Development Corporation

PIFRA

Pakistan Improvement of Financial Reporting and Accounting

PSDP

Public Sector Development Program

PTCL

Pakistan Telecommunications Company Limited

SBP

State Bank of Pakistan

SNGPL

Sui Northern Gas Pipeline Limited

SSGCL

Sui Southen Gas Company Limited

WAPDA

Water and Power Development Authority

Front Matter Page

WORKING SET ROOM HQ C-525 0493

News Brief No. 01/32

International Monetary Fund

FOR IMMEDIATE RELEASE

700 19th Street, NW

March 30, 2001

Washington, D. C. 20431 USA