By Ahmed Mukhtar Naqshbandi
ISLAMABAD: The technical-level talks between Pakistani officials and an international monetary fund (IMF) delegation will end today (Monday) as the two parties move close to an agreement to resume the bailout programme that has stalled for months.
An IMF delegation is currently in Pakistan for last-ditch talks to revive the vital financial aid.
The global lender’s team will today hand over nine macroeconomic tables to the finance ministry.
Meanwhile, policy-level talks between the finance ministry and the IMF delegation will begin tomorrow and continue for the next three days. Reportedly, the two parties have agreed on all key areas, such as the increase in tariffs, petroleum prices and privatization.
According to sources, the IMF has demanded that Pakistan Steel Mills and two power plants – Haveli Bahadur Shah and Baloki – be privatized by June, adding that the privatisation commission will give a plan for the immediate denationalization of both power plants, which will be finalized by the fund by tomorrow.
Govt forced to agree to IMF’s strict conditionalities
The global lender has set up strict conditions for the resumption of the bailout programme, such as asking the government to allow a market-determined exchange rate for the local currency, easing fuel subsidies, and controlling circular debt in the power sector.
Pakistan’s Prime Minister Shehbaz Sharif said on Friday that the government would have to agree to IMF bailout conditions that were “beyond imagination”.
Pakistan’s economy is in a highly fragile state, stricken by a balance of payments crisis as the government attempts to service high levels of external debt amid political chaos and deteriorating security conditions.
