Finance Minister Dar had said that all the conditions of IMF are being fulfilled by the government and tough decisions are being taken. But the IMF is still in the process of ascertaining who is in power in the country so that future commitments can be met. Because of this, the loan program has been stuck since November 2022.
Recently, during an event at Princeton University, Raza Baqir, former governor of the State Bank of Pakistan (SBP), expressed concern that the IMF is struggling to trust the issue of lending countries to Pakistan. . He said that whatever has been said has not been completed yet.
Government and IMF engaged in talks
The Government of Pakistan is currently engaged in completing formal negotiations with the IMF. The government has implemented many difficult decisions for the IMF loan. Electricity prices have been increased in the country and new taxes worth Rs 170 billion have also been imposed. The government says that even after this, the IMF is constantly demanding from the government to get financial assurance of three to four billion dollars from the friendly countries.
Two billion and one billion dollars have been pointed out from Saudi Arabia and UAE. But till now there is no information about when and how this loan will be available. Loans have been announced several times in the recent past by both the countries. In such a situation, it has to be seen how far his promise will come true this time.
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misconception among people
According to Atif Mian, Pakistani economist and author of ‘House of Debt’, the government’s credibility has been eroded due to poor decisions taken by several institutions. There is a perception about Pakistan that it is no longer a good place to invest. Those who have left the country do not want to come back. There are queues of people applying for visas even to leave the country. Miyan stressed the need to give importance to people who are taking Pakistan in the right direction and to respect non-political officials.
Challenges before both
Pakistan is facing many challenges before the IMF. According to experts, it is necessary for the IMF to assess Pakistan’s leadership and its ability to implement necessary economic reforms. But at the same time the government should also fulfill its commitments. Also work towards building credible partnerships to revive the programme.
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