The government began talks with the International Monetary Fund (IMF) on Wednesday on the release of key funds, a process that has been undermined by concerns about the country’s economic transformation.
Pakistan has always sought international support for its economy, which has been affected by the national debt, inflation and depreciation of the rupee.
Negotiations are being held in Qatar’s Doha capital, Finance Minister said, and it is expected to continue next week.
Minister of Finance Miftah Ismail, Minister of State Dr Aisha Ghous Pasha, Secretary of State Ahmed Yaqoob Shaikh, Pakistan National Bank (SBP) Acting Governor Dr Murtaza Syed, Chairman of the Tax Board (FBR) Asim Ahmad and other officials from the Ministry of Finance. by participating in lectures.
A major holding point could be over expensive finances – especially in oil and electricity – and the finance minister said he wanted the two sides to “find a middle ground”.
“The government will try to convince the IMF that in order to maintain political stability it is important to maintain a minimum of support,” said economist Shahrukh Wani.
“The IMF is probably, appropriately, saying that these cannot be maintained and should be pushed back to make trade and budgets more manageable,” he added.
The $ 6 billion IMF bail package signed by former prime minister Imran Khan in 2019 has never been fully implemented as his government has withdrawn from agreements to reduce or eliminate other grants and improve revenue and tax collection.
Islamabad has so far received $ 3 billion, with a program that should end later this year.
Officials are demanding an extension of the program until June 2023, with the release of the next $ 1 billion segment.
Prime Minister Shehbaz Sharif has vowed to scrap the moribund economy, but analysts say his weak government has failed to make tough decisions.
In a recent meeting with the new finance minister, the IMF linked the continuation of its borrowing program with the transformation of petroleum subsidies, introduced by the previous government. However, Prime Minister Shehbaz has repeatedly rejected a summary by the Oil and Gas Regulatory Authority and the financial service to raise fuel prices.
“It is a government that has refused to take serious political action to bring economic relief – but that is exactly what it has to do with going to the IMF,” said Michael Kugelman, deputy director of Asia at the Wilson Center in Washington.
