PM’s meeting with IMF chief at UN: Phasing out of certain SBA conditions highly unlikely
ISLAMABAD: In the event that Caretaker Prime Minister Anwaar-ul-Haq Kakar manages to meet Managing Director International Monetary Fund (IMF), Kristalina Georgieva, on the sidelines of the 78th session of the United Nations (UN) General Assembly in New York, it is unlikely to lead to phasing out of a single harsh upfront condition agreed in the Stand By Arrangement (SBA) approved on 12 July 2023.
This was the consensus of several sources in the finance ministry on condition of anonymity who added that a request to subsidise and/or allow payment in installments to those consuming less than 200 units of electricity is also not likely to be favourably entertained by the Fund.
While taking to Business Recorder, former adviser on Finance to the government of Sindh Kaiser Bengali lamented that the caretaker government has neither been able to control expenditure nor increase revenue and current account deficit is on the rise, therefore, there is no space for any relief and/or downward adjustment of utility rates.
He further stated that there is no option for the caretaker government but to implement the SBA agreement in letter and spirit.
PM likely to meet IMF MD on UNGA sidelines
The caretaker premier told media, in response to their question during a press conference last week, that the government would provide relief to those consuming up to 200 units in a week.
According to the Foreign Office Kakar is likely to have a meeting with MD IMF on the sidelines of the (UN) General Assembly.
Former Adviser to Finance Ministry Dr Ashfaque Hasan Khan stated that the caretaker prime minister will make an effort during a likely meeting with MD IMF to explain difficulties and challenges facing the general public in terms of high electricity prices but expressed reservations on whether any relief would be forthcoming.
Copyright Business Recorder, 2023
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