Alam Zeb Khan
ISLAMABAD: In order to put Pakistan back on the right track and get rid of the current quagmire, Pakistan’s Prime Minister Shehbaz Sharif has delivered a clear message to the International Monetary Fund (IMF) about the country’s desire to complete the ninth review of the $7 billion Extended Fund Facility (EFF).
The Prime Minister said this while addressing the launch of a loan scheme in Islamabad on Tuesday, while adding that Pakistan wanted to complete the ninth review and has communicated with the IMF “to sit down regarding your conditions so that it can be concluded and Pakistan can move forward”.
The Premier said that the government had written to the international money lender. “I talked to the IMF managing director two weeks ago and we have proactively approached them that we want to complete the ninth review without delay so that the program moves forward, in addition to other multilateral and bilateral programs.”
IMF Conditions
According to sources, the government of Pakistan has agreed to fulfill all demands of the IMF including an increase in electricity, and gas charges along with gradual imposition of further levies on petroleum. There are some other demands from the IMF, like free-floating dollar, LCs blocking issues etc which the government has agreed to accept.
Accepting IMF’s condition will pave way for the successful release of the next tranche of funds to Pakistan, which has been pending since September after the previous government made breached to the agreement.
There is a possible skyrocketing increase in prices after the government’s implementation of the IMF demands. And the government was reluctant to move ahead with these demands due to fear of losing in the upcoming elections. However, economic experts are of the view that at present Pakistan is in a do-or-die situation.
IMF officials have indicated to Pakistan in the recent past that the monetary body is willing to continue working with Pakistan, however, Pakistan must meet some basic requirements, particularly the demands they were pressing for to be fulfilled.
Some experts say Pakistan’s Finance Minister was responsible for the delay and he was reluctant from the very beginning, creating further havoc in the economic situation of the country.
However, some independent experts have reportedly communicated to the Prime Minister to act promptly before it’s too late.
IMF Next Tranche
According to sources, after sensing the situation and PM Shehbaz nodding to the IMF, it is possible that things might settle down during last week of January or in the first week of February.
The sources also disclosed that the current uncertain situation may be turned around in the middle of next month, bringing some good news to the economic situation in the country.
