Get Honorary PhD

Pakistan Crisis: Clouds of crisis looming over Pakistan deepen, hurdle in talks with IMF on bailout!

Pankaj Prasad
International Monetary Fund
International Monetary Fund

Pakistan had secured USD 6 billion International Monetary Fund (IMF) help in 2019 during Imran Khan's government.

The Pakistan government, which is facing cash crisis, does not seem to be successful in negotiating a bailout package with the International Monetary Fund (IMF). The talks reportedly turned sour after the two sides failed to finalize foreign financing projections and precise domestic fiscal measures.

A clear outline on external financing and domestic budgetary steps has arrived in Pakistan with officials involved in the International Monetary Fund (IMF) mission, at least a day before the talks are to end on February 9, a media report said on Thursday. should have been shared. Not shared yet. A senior government official said, “We have not received the draft Memorandum of Economic and Fiscal Policies (MEFP) till Wednesday night. "The fund's objections to the final action plan still remain," he added.    

Pakistan had secured USD 6 billion International Monetary Fund (IMF) aid in 2019 during Imran Khan's government. It was increased to USD 7 billion last year but due to the poor economic condition of the country, it is not able to get its amount from the IMF. 

The ninth review of the program is currently pending and talks are on between IMF officials and the government to release $1.18 billion. However, Minister of State for Finance and Revenue Aisha Ghaus Pasha said, "We are very close to finalizing the matter." She added that the MEFP will be handed over to the IMF after all issues are finally resolved . Many things have been resolved and some of them need clarity on which the government team is working. In a written statement, the Finance Ministry said that the talks with the IMF continued on Wednesday. etc. A broad consensus has been reached on the reform actions and measures.

The head of mission of the IMF has also met the finance minister and briefed him about the talks, the statement said. "The mission is working on putting all this together and the MEFP will be finalised," the finance secretary said. He, however, declined to comment on whether the talks scheduled to reach a staff-level agreement would be extended.