ISLAMABAD: Pakistan on Wednesday approached US officials and asked them to use their diplomatic influence to convince the International Monetary Fund (IMF) to ease loan conditions as the country faces economic and political challenges. is going through a critical phase.
This request was made by Federal Finance Minister Ishaq Dar in a meeting with the visiting Deputy Assistant Secretary for Asia, Robert Kapruth, in the Finance Division of the US Treasury Department on Wednesday.
The loan program has been stalled for months and the Shahbaz Sharif government is finding it difficult to implement lenders’ terms amid a tense political environment in the country and elections due in months.
The government is in a fix because imposing more taxes on an already overburdened citizenry will put the ruling coalition in a more difficult situation with all-time high inflation and rapidly dwindling foreign exchange reserves.
The friendly countries have also told Islamabad that the restoration of the IMF loan facility will open up other sources of financial support needed for economic stability.
An official announcement here said that Eva Gharmai, Senior Macro Economist of Pakistan’s Finance Department, Financial Attaché Larita Bolden, Minister of State for Finance and Revenue Dr Ayesha Ghos Pasha, SAPM for Finance Tariq Bajwa, Secretary Finance and Finance K. Senior officers. Division attended the meeting.
Finance Minister Ishaq Dar welcomed Robert Kapruth and informed him about the economic situation of the country.
He informed them that the government has got a weak economic legacy and is focused on bringing things in the right direction by introducing reforms in all sectors including the energy sector and capital market to achieve economic growth and development despite difficult economic conditions. is concentrated.
He said that thanks to the practical measures taken by the government, the country is progressing towards development and prosperity.
The finance minister also apprised them of the government’s economic priorities, including putting the economy on the right track while meeting international obligations.
Dar also spoke with Robert Kapruth about the damage caused by the floods in Pakistan and the impact on Pakistan’s economy. He asserted that the government is tackling all the challenges with full determination.
In response, Kapruth emphasized the good relations between Pakistan and the US and expressed confidence in the government’s policies and programs for economic and financial stability.
Negotiations between Pakistan and IMF
Meanwhile, sources say Pakistan and the IMF continued to exchange data this week, but the fund has so far shown no signs of softening and has not eased its strict conditions.
One reason for the conflict is the persistent differences over how to deal with the exchange rate because the IMF considers it completely unacceptable to maintain an artificially stable exchange rate.
Although Prime Minister Shehbaz Sharif has publicly announced that the government is ready to implement all IMF conditions for reviving the fund program, the government is finding it politically difficult to implement the strict conditions.
When contacted, a senior officer of the finance division said that the discussions continued in a positive manner.
