Pakistan’s new finance chief urges IMF to ease harsh economic conditions

ISLAMABAD – Newly appointed Finance and Revenue Minister Ishaq Dar held a virtual meeting with the International Monetary Fund (IMF) Mission Chief Nathan Porter on Thursday.

During his first interaction with IMF Mission Chief Nathan Porter, the new finance czar urged global lender to ease their harsh programme conditions that require cash-strapped country to further hike power tariffs and taxes on fuel rates.

Dar briefed the IMF mission on the economic impacts of unprecedented floods that affect infrastructure, crops and livelihood.

Finance Minister Senator Muhammad Ishaq Dar Ismail held a virtual meeting with IMF Mission Chief Mr. Nathan Porter, discussed the IMF program. Nathan Porter expressed IMF’s support for Pakistan in this hour of need. @MIshaqDar50 pic.twitter.com/M5uUimFwYI

— Ministry of Finance, Government of Pakistan (@Financegovpk) September 29, 2022

He said the government would take measures to reduce the burden on the economy while protecting vulnerable sections after the worst calamity in recent memory.

Pakistan will its fiscal deficit and move towards sustainable growth, Dar claimed, adding the government is chalking out a strategy to address structural issues.

During the first interaction, Porter felicitated Dar and asked the finance minister about the specifics of any proposal to seek debt rescheduling from the Paris Club to whom Islamabad owes nearly 10 billion.

Recalling Prime Minister Shehbaz Sharif’s meeting with the IMF managing director during US visit, Dar said IMF vowed to support South Asian nations amid difficult situations after flash floods.

Earlier, IMF put several stern conditions for extended fund facility and the government increased the petroleum levy to Rs50 per litre on all petroleum products. Currently, it is charging Rs37.50 per litre.

Reports in local media said the mission of US based lender did not give any commitment, however mentioned that IMF was looking into the Pakistani request.