International Monetary Fund (IMF) lauded the progress made by Pakistan on policy measures to address domestic and external imbalances, and said that virtual discussions will continue to finalize details.
Pakistan fails to reach IMF staff level pact. The IMF fails to reach a clear agreement, hindering bailout funds.
According to Geo News, Finance Secretary Hamed Sheikh stated, “We’ve reached an agreement with the IMF on prerequisite measures.” “The IMF mission asked for more time for staff-level negotiations.”
The country’s state television channel quoted finance ministry officials as saying some points still need to be addressed.
However, the IMF delegation were due to fly out of the country on Friday after ten days of talks, state broadcaster PTV said.
Pakistan’s economy is in dire straits, stricken by a balance of payments crisis as it attempts to service high levels of external debt amid political chaos and deteriorating security.
The IMF delegation landed in Islamabad last week to thrash out tough conditions that Prime Minister Shehbaz Sharif called “beyond imagination”.
Latest IMF bailout installments stalled for months. Government seeks aid from friendly nations to avoid harsh IMF conditions with elections nearing.
Analysts caution against rejecting conditions, fearing political repercussions. However, agreeing to IMF measures could also raise living costs.
On Thursday the central bank released fresh data warning its forex reserves had plunged $170 million in a week, standing at just $2.9 billion as of last Friday.
ALSO SEE: IMF Predicts Growth to Reduce by 4.7% in the Economies of the Middle East and Central Asia
Pakistan fails to reach IMF staff level pact
Pakistan fails to reach IMF staff level pact. IMF demands tax base boost, end tax exemptions, and raise utility prices.
Pakistan urged to maintain sustainable US dollar reserves. Saudi Arabia, China, UAE, and World Bank pledge further support.
The government had earlier indicated that a deal was close, with Pakistan Energy Minister Khurram Dastgir Khan telling media “I have full hope that these talks will be concluded successfully”.
The fifth most populous nation halts letters of credit issuance, except for essential items. Karachi port faces container backlog.
Meanwhile industries warned the logjam of cargo would increasingly cause factories to shut, having a cascading effect on employment.
The IMF had been at loggerheads with PM Sharif’s government over unlocking the latest tranche of a draft $6.5 billion package agreed in 2019.
With elections due no later than mid-October, Sharif was wary of ending popular market interventions designed to cushion the cost-of-living crisis for Pakistanis.
Government yields, eases rupee controls to curb black market. Rupee hits record low. Petrol prices surge by 16 percent.
Fears of price hike lead to hoarding in Punjab. Minister Musadik Malik states government has “no plans” for fuel increase.
Original Source: TRT World
