There has been some breakthrough at the informal level between Pakistan and the International Monetary Fund (IMF) on the revival of over $1.1 billion in funds for the country.
According to the Minister of State for Finance Dr. Aisha Ghaus Pasha, “some understanding” has been reached with the IMF while the PM has approved “some clearance” for expediting a deal in the coming days.
On the second day of policy-level talks with the fund, Pasha told reporters that the IMF wants more clarity on some issues before moving toward the deal. She further claimed that talks with the IMF are progressing well and that the government’s main focus during the negotiations has been to protect the nation.
In response to a question, she stated that a decision on the rate of increase in the electricity price would be made later. She said rates would be decided later because they could not be raised significantly because the government wanted to protect the common man.
The minister expressed confidence that the government would guarantee that the burden of the program has the least impact on the common man and that those who can afford to cover should pay a higher percentage of any increase in electricity costs and taxes if any were imposed.
Contrary to Pasha’s comments, technical-level talks with the IMF have been a nightmare for the Pakistani side as the lender took issue with the performance of the power sector and requested the withdrawal of subsidies to control the circular debt, as well as foisting new taxes to bridge the revenue gap.
Whether an agreement was reached between the Fund and Pakistani authorities or not, the Finance Division has yet to officially confirm any breakthrough in its dealings with the lender. Pertinently, Thursday (today) is the last day of policy-level talks.
