ISLAMABAD: Pakistan turned to the authorities in the United States on Wednesday to ask them to use their diplomatic power to get the International Monetary Fund (IMF) to relax loan terms because the country is going through a critical economic and political period.
In his meeting with Robert Kaproth, the visiting Deputy Assistant Secretary of the US Department of the Treasury for Asia, at the Finance Division on Wednesday, Federal Finance Minister Ishaq Dar made this request.
The loan program has been stalled for months, and the Shehbaz Sharif government is having trouble enforcing the terms of the lender in the face of a tense political climate in the country and upcoming elections.
The government is in a predicament because, with inflation at an all-time high and forex reserves rapidly declining, increasing taxes on already-burdened citizens will put the ruling alliance in a more difficult position.
Additionally, the friendly nations have informed Islamabad that the reopening of the IMF loan facility will open up additional sources of crucial financial assistance for economic stability.
The meeting was attended by senior Finance Division officers as well as Senior Macroeconomist for the Department of Treasury for Pakistan Eva Ghirmai, Financial Attache Larita Bolden, Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, SAPM on Finance Tariq Bajwa, according to an official announcement.
Robert Kaproth was greeted and briefed on the country’s economic outlook by Finance Minister Ishaq Dar.
He informed him that, despite challenging economic conditions, the government is focusing on making things right by implementing reforms in all sectors, including the energy sector and capital market, in order to achieve economic growth and development. The government inherited a weak economic legacy.
He stated that the country is destined for advancement and development as a result of the government’s pragmatic actions.
In addition, the finance minister informed him of the government’s economic priorities, which include putting the economy on the right track and meeting its international obligations.
Dar also talked to Robert Kaproth about the damage that the floods in Pakistan caused and how they affected Pakistan’s economy. He emphasized that the government is fully committed to addressing all issues.
In response, Kaproth emphasized the positive relationship between Pakistan and the United States and expressed confidence in the government’s economic and financial stability policies and programs.
Pakistan-IMF talks
According to sources, Pakistan and the IMF have continued their data exchange this week, but the Fund has not yet relaxed its stringent conditions.
Differences over how to deal with the exchange rate, which the IMF considers to be completely unacceptable for maintaining an artificially stable exchange rate, are one of the main points of contention.
Even though PM Shehbaz Sharif had made it clear publicly that the government was ready to comply with all of the IMF’s requirements for reviving the Fund program, the government was having trouble politically putting those stringent requirements into action.
When contacted, a senior Finance Division official stated that the talks were going well.
