Pakistan
Pakistan govt fears losing popularity ahead of polls due to IMF deal
Islamabad: The Pakistani government is fearing that it might lose popularity ahead of the general polls which is keeping it away from finalising a deal with the International Monetary Fund (IMF) that could stabilise the economy.
Official and diplomatic sources told Dawn on Monday that both sides were still discussing the seven demands that the IMF wants Pakistan to accept before it resumes economic assistance to the country.
The demands include withdrawing electric subsidies, linking gas prices to the international market, free-floating dollars, and not blocking LCs.
The government “fears that implementing some of these demands will hike the price of essential items across the board,” a source told Dawn News.
“It will make the government even more unpopular than it already is, so close to the elections.”
Islamabad is waiting for the 9th review of a loan-arrangement that the previous government signed with the IMF. The review would lead to the release of the next tranche of funds to Pakistan that has been pending since September.
In August 2022, the IMF approved the seventh and eighth reviews of Pakistan’s bailout program, agreed in 2019, allowing the release of more than $1.1 billion.
IMF officials have indicated that they are willing to continue working with Pakistan, but the country should first meet some basic requirements.
“They are asking for basics, so that they can send their team to Islamabad, but the finance minister is reluctant to do so,” said an official aware of the talks.
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