ISLAMABAD – Pakistani government and International Monetary Fund (IMF) remained at loggerheads and both sides faced challenges in reaching agreement over policy measures, implementation of reforms, and meeting targets.
As the country of nearly 250 million is in worsening debt crisis; Sharif led government is apparently activating Plan B – the arrangement which was referred by the country’s finance czar Ishaq Dar.
Under the latest gambit, Pakistan is approaching friendly nations to fill the financial gap as the ongoing talks with global lender hang in balance. To bridge funds, the Pakistani government has decided to approach China, UAE and Saudi Arabia.
Islamabad will ask for additional funds of $3 billion from bilateral friends, and it will help Pakistan surpass 2023 without moving toward default.
Pakistani government rolled out the budget for the next financial year with the aim to boost economic growth with several stern measures, however, International Monetary Fund is still not satisfied. The US-based lender raised objections over the budgetary framework, and asked Sharif-led government to increase both tax and non-tax revenues efforts.
Amid the uncertainty, Moody’s Investors Service warned that Islamabad is at huge risk of a failure to salvage IMF bailout funds which remained stalled since November last year. In a statement, the rating company said Pakistan could default, without an IMF programme.
Islamabad has taken all desperate measures to appease the international lender, with a financing gap of around $2 billion and exchange-rate policy among the biggest hurdles.
Pakistan s inflation reaches a record high in April, highest in South Asia
