Pakistan requests an IMF: The IMF’s demands for economic reforms should be put on hold as Pakistan attempts to recover from devastating floods, the country’s prime minister said in Geneva on Monday.
As Islamabad deals with the “nightmarish” scenario, Shehbaz Sharif claimed he was attempting to persuade the International Monetary Fund (IMF) to allow Islamabad some breathing room.
The international lender wants Pakistan to terminate all remaining electricity and petroleum product subsidies that were given to the general public.
Reporters questioned Shehbaz about the IMF money block at a symposium on Pakistan’s recovery from last year’s devastating monsoon floods at the United Nations in Geneva.
Pakistan continues to garner pledges at the Geneva summit, with commitments announced above $10 billion.
With the rupee falling and inflation reaching decades-high levels, Pakistan’s economy has collapsed along with a simmering political crisis, but the floods and the world energy crisis have added to the strain.;
Before the floods in July and August of last year, Shehbaz took office in April.
After Pakistan finally complied with requirements like cutting fuel subsidies, a $6 billion IMF contract that had been signed by the previous administration was reopened.
But with the latest payment made in August and a subsequent evaluation of the package still ongoing, Islamabad has only gotten half of the monies to date.
“We were already experiencing huge issues before these floods hit Pakistan,” he remarked.
Even harsher conditions had to be accepted as Shehbaz reconnected with the IMF and revived an arrangement that had been broken by the previous administration.
He said that Pakistan was doing its best to abide by the IMF’s requirements, but he questioned “how on Earth” the poorest citizens of the nation could bear the additional costs.
“However, we are dedicated to the IMF’s program. We will make every effort to abide by the rules and regulations. Even if I keep pleading with them, “Please give us a break,” he added.
‘Be thoughtful,’
On Saturday, Shehbaz talked with Kristalina Georgieva, the managing director of the IMF. During their conversation, Shehbaz requested that Georgieva be considerate and empathetic towards his country’s situation. He asked her to “give us some breathing space,” according to his statement. It is unclear what specific actions or considerations Shehbaz requested from Georgieva.
IMF team will meet Dar in Geneva despite stalled bailout
“This conversation is still going. I’m confident that with time and evidence, we will be able to persuade them.
That being said, we will follow the IMF program nonetheless.
A Pakistani minister spoke to AFP under the condition of anonymity. According to this minister, Finance Minister Ishaq Dar will meet with an IMF delegation in Geneva on Monday. The source wished to remain anonymous in order to speak freely about the upcoming meeting.
The country only has about three weeks’ worth of foreign exchange reserves remaining. These reserves are used to cover imports. According to economists and dealers, the only way to support the economy is with an immediate IMF cash infusion. Without this injection of funds, the country’s economy may struggle to sustain itself.
At the Geneva summit, Britain urged Pakistan to complete the ninth review of the IMF program. Britain also urged Pakistan to keep up its macroeconomic reforms. The Geneva summit is an international conference where issues and policies are discussed and decisions are made.
The world would be more willing to assist Pakistan. According to development minister Andrew Mitchell, “Pakistani taxpayers are seen to be playing a vital part in this endeavor.” This statement suggests that the involvement of Pakistani taxpayers is important for the success of this effort.