Islamabad : March 17, 2024: The final round of Pakistan and International Monetary Fund (IMF) talks will commence here on Monday (today) and its outcome will decide if Islamabad gets the last tranche of $1.1 billion of $ 3 billion standby facility approved by the fund last year to save Pakistan ‘s economy from collapse . Pakistan ‘s economy was for free fall in the last 16-month tenure of Shahbaz Sharif.
Ishaq Dar , a Pakistan Muslim League Nawaz (PMLN) economic hitman had played a key role as Finance minister in dumping Pakistan ‘s economy . His hostile behaviour annoyed IMF authorities barring them to put up Pakistan ‘s case for a bailout package seriously . Finally , seeing a default on international obligations , Shahbaz Sharif , himself rushed to IMF top officials for securing a bailout package . Shahbaz Sharif ‘s efforts worked positively and finally IMF approved a $ 3 billion SBA for Pakistan in 2023!. IMF bailout package stopped downside of Pakistan ‘s currency against US dollar and it helped restore confidence of Pakistani and international investors in Pakistan’s economy . Pakistan has so far received two installments of $ $ 1.9 billion under the current SBA and its making a case for the last tranche with IMF visiting mission. Since the caretakers have done better job on almost all key fronts like revenue collection , seizing of circular debt , cutting down non-developmental expenditures and making timely payments on foreign loans , there is a possibility that the vising review mission may plead Pakistan ‘s case for release of $ 1.1 billion tranche of the current SBA . Pakistan’s side has agreed to almost all conditions laid down by the fund in the last three days parleys like taxing real estate sector and ending special tax exemption for it, adding tax payers numbers substantially , maintaining circular debt at the current level and add future increase in gas and electricity to the consumers, sell -off of all loss making entities like Pakistan Railways , PIA , GENCOs and bring small traders into tax net . These all conditions have been presented by IMF review mission to Pakistan ‘s officials and they have agreed to all these conditions. However, Pakistan is facing tough question from IMF review mission on payments to Chinese power plants whose accumulative unpaid amount is Rs 493 billion . Chinese government is continuously pressing Islamabad for early payments to its power plants .
Pakistan has no option, but to accept all conditions made by IMF to release for Pakistan the last tranche of $ 1.1 billion of the current SBA. In other case, Pakistan will again be in serious trouble on economic front in coming months which Pakistan can not afford at least for now.