ISLAMABAD: Judgment PML-N PartyFear of losing popularity ahead of this year’s election appears to be preventing the government from finalizing a much-needed IMF deal that could stabilize the cash-strapped economy, according to a news report on Tuesday.
Official and diplomatic sources told the Dawn newspaper that the two sides are still discussing the seven demands the International Monetary Fund wants Pakistan to accept before resuming economic aid to the country.
The demands include removing electricity subsidies, linking gas prices to the international market and floating dollars.
decision pakistan muslim league (Nawaz) (PML-N) “concerns that implementing some of these demands will increase the price of essential items across the board,” a source told the newspaper.
“It will make the government even more popular than it already is, so close to the election.”
General elections in Pakistan are scheduled after August. However, President of Pakistan Tehreek-e-Insaf (PTI) and former Pakistani Prime Minister Imran Khan is demanding instant polls.
Cash-strapped Pakistan last year revived a stalled $6 billion IMF program originally agreed in 2019 but struggling to meet tough terms from the Washington-based global lender.
According to reports, the IMF may not release more funds under the program until the promises made by the government are fulfilled.
The IMF board approved the seventh and eighth reviews of Pakistan’s bailout program in August, releasing more than $1.1 billion.
Pakistan’s electricity regulator has already allowed Sui Northern Gas Pipeline Ltd (SNGPL) and Sui Southern Gas Company (SSGC) to raise tariffs by up to 75%, subject to cabinet approval.
Islamabad is awaiting the 9th revision of a loan agreement that the previous government signed with the IMF. The review would lead to the release of the next tranche of funds to Pakistan, pending since September.
IMF officials have indicated they are open to continuing to work with Pakistan, but the country would need to meet some basic requirements first.
“They are asking for bases so they can send their team to Islamabad, but the finance minister is reluctant to do so,” said an official familiar with the talks.
The official said the IMF was asking for “some movement on energy prices and demonstration of Islamabad’s reform intent, but Finance Minister Ishaq Dar is not giving an inch.”
Officials in Islamabad have urged Prime Minister Shehbaz Sharif to intervene before it is too late. “It could have been finalized four months ago,” another official said.
The official said he ‘doesn’t personally expect much before a goalkeeper setup takes over the centre’. Asked why the official said, “Dar Saheb will not allow the exchange rate to reach market levels.”
And if “we don’t have an IMF program, the situation will not normalize,” he added.
Another official told Dawn in Islamabad: “If Pakistan waits for the guardians to hold talks with the IMF, it will be a disaster.
Official and diplomatic sources told the Dawn newspaper that the two sides are still discussing the seven demands the International Monetary Fund wants Pakistan to accept before resuming economic aid to the country.
The demands include removing electricity subsidies, linking gas prices to the international market and floating dollars.
decision pakistan muslim league (Nawaz) (PML-N) “concerns that implementing some of these demands will increase the price of essential items across the board,” a source told the newspaper.
“It will make the government even more popular than it already is, so close to the election.”
General elections in Pakistan are scheduled after August. However, President of Pakistan Tehreek-e-Insaf (PTI) and former Pakistani Prime Minister Imran Khan is demanding instant polls.
Cash-strapped Pakistan last year revived a stalled $6 billion IMF program originally agreed in 2019 but struggling to meet tough terms from the Washington-based global lender.
According to reports, the IMF may not release more funds under the program until the promises made by the government are fulfilled.
The IMF board approved the seventh and eighth reviews of Pakistan’s bailout program in August, releasing more than $1.1 billion.
Pakistan’s electricity regulator has already allowed Sui Northern Gas Pipeline Ltd (SNGPL) and Sui Southern Gas Company (SSGC) to raise tariffs by up to 75%, subject to cabinet approval.
Islamabad is awaiting the 9th revision of a loan agreement that the previous government signed with the IMF. The review would lead to the release of the next tranche of funds to Pakistan, pending since September.
IMF officials have indicated they are open to continuing to work with Pakistan, but the country would need to meet some basic requirements first.
“They are asking for bases so they can send their team to Islamabad, but the finance minister is reluctant to do so,” said an official familiar with the talks.
The official said the IMF was asking for “some movement on energy prices and demonstration of Islamabad’s reform intent, but Finance Minister Ishaq Dar is not giving an inch.”
Officials in Islamabad have urged Prime Minister Shehbaz Sharif to intervene before it is too late. “It could have been finalized four months ago,” another official said.
The official said he ‘doesn’t personally expect much before a goalkeeper setup takes over the centre’. Asked why the official said, “Dar Saheb will not allow the exchange rate to reach market levels.”
And if “we don’t have an IMF program, the situation will not normalize,” he added.
Another official told Dawn in Islamabad: “If Pakistan waits for the guardians to hold talks with the IMF, it will be a disaster.
