ISLAMABAD: Around two weeks ago, Pakistan’s top level officials team led by Finance secretary had left for Washington to have talks with the International Monetory Fund (IMF) to secure a $ 1 billion loan for Pakistan to plug in widening current account deficit. At that stage, the official team was smelling some difficult response from IMF, but it was not expecting that the IMF will give such a tough response that will ultimately end -up at a debacle.
Pakistan is badly in need of huge inflow of funds from multinational donors to keep its financial burden at some bearable level and for the same it had initiated talks with IMF in Washington early this month, but the result of these talks with IMF is unexpected and difficult one for Pakistan.
The media was reporting collapse of Pakistan’s talks with MF , but the government not only refuted these reports, but also gave an impression in local media as if its talks with IMF were about to succeed.
Shaukat Tareen who had undertaken a number of unpopular decisions like surge in petroleum prices and power rates to give an impression to the IMF that the present government of Pakistan could take even more unpopular decisions no matter how it bite to the people of Pakistan, but nothimg worked in favour of Tareen and his team. Finally, talks with IMF ended- up in limbo and advisor to the prime minister had to leave from Washington without seal any deal with IMF to secure $ 1 billion loans. The hard terms set by IMF to provide more loan to Pakistan, in particular, regarding withdrawal of exemptions amounting to Rs 330 billion caused collapse of talks with IMF.
