A wave of deepening uncertainty pervades the country amid ongoing talks between Pakistan and the International Monetary Fund (IMF). This is quite strange, so to speak.
Although a largely depressed stock exchange has received a much-needed boost and a battered rupee shown some improvement following the arrival of the IMF mission in Pakistan, the question whether the government-IMF talks will eventually help unlock the stalled IMF bailout and immediately arrest the country’s economic slide has no clear answer.
That the IMF is not willing to show any flexibility insofar as its conditionalities are concerned is well known. The Fund, according to media reports, has demanded the government withdraw power subsidy that the latter has extended to the export-oriented sector, raise energy tariffs, reduce fiscal deficit, meet revenue collection target, contain the widening debt, etc.
The government’s response to the IMF demands is still unknown. What will happen if these talks do not succeed? I have another question: what’s in store?
Haleem Siddiqui (Karachi)
Copyright Business Recorder, 2023
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