Dar says new government should negotiate fresh IMF deal

By Staff Reporter

ISLAMABAD: Finance Minister Ishaq Dar said on Thursday that the new elected government should negotiate a fresh deal with the International Monetary Fund (IMF) after the current programme ends in June.

Dar made the remarks during a question-and-answer session following the unveiling of the Economic Survey 2022-23.

“We need to be clear that the current IMF programme is scheduled to end on June 30,” the minister said in response to a question if the current government’s plan included negotiating a new deal with the Washington-based lender amid calls for Pakistan’s need for another bailout.

“We are hopeful the ninth review is completed successfully, as it is necessary for Pakistan. After this, it will be only fair that it be the prerogative of a new government, after elections, to negotiate any new programme with the IMF.”

The remarks show the current government is not thinking beyond June 30, and will be looking towards the caretaker setup to continue the country’s economic stabilisation.

The IMF has conducted just eight of the ten reviews that were to take place during the EFF, and the last one took place in August last year.

Dar also said there was a “plan-B” in case there is no IMF deal on the current review.

“We have a ‘plan B’, if God forbid, we are dragged to a corner. We cannot allow ourselves to default.”

“As compared to our external obligations of $100 billion, Pakistan’s assets run in trillions of dollars… Our gas pipeline infrastructure, alone, amounts to $40-50 billion,” Dar said. “Yes, we are facing a liquidity crunch, but that is due to stupidity (of the past government) over external account spending.”

Analysts said the IMF programme will not be completed in its “true sense”. The programme, due to end in June, is stalled at the ninth review since November last year.

“The programme ends in June, and we know what the IMF said today with regards to clubbing the reviews,” an analyst said.

The government has imposed taxes, raised energy tariffs and scaled back subsidies in an attempt to persuade the IMF to unlock funding, and its central bank has also raised the key policy rate to a record 21 percent.

Copyright © 2021 Independent Pakistan | All rights reserved

Dar says new government should negotiate fresh IMF deal

Dar says new government should negotiate fresh IMF deal

By Staff Reporter

ISLAMABAD: Finance Minister Ishaq Dar said on Thursday that the new elected government should negotiate a fresh deal with the International Monetary Fund (IMF) after the current programme ends in June.

Dar made the remarks during a question-and-answer session following the unveiling of the Economic Survey 2022-23.

“We need to be clear that the current IMF programme is scheduled to end on June 30,” the minister said in response to a question if the current government’s plan included negotiating a new deal with the Washington-based lender amid calls for Pakistan’s need for another bailout.

“We are hopeful the ninth review is completed successfully, as it is necessary for Pakistan. After this, it will be only fair that it be the prerogative of a new government, after elections, to negotiate any new programme with the IMF.”

The remarks show the current government is not thinking beyond June 30, and will be looking towards the caretaker setup to continue the country’s economic stabilisation.

The IMF has conducted just eight of the ten reviews that were to take place during the EFF, and the last one took place in August last year.

Dar also said there was a “plan-B” in case there is no IMF deal on the current review.

“We have a ‘plan B’, if God forbid, we are dragged to a corner. We cannot allow ourselves to default.”

“As compared to our external obligations of $100 billion, Pakistan’s assets run in trillions of dollars… Our gas pipeline infrastructure, alone, amounts to $40-50 billion,” Dar said. “Yes, we are facing a liquidity crunch, but that is due to stupidity (of the past government) over external account spending.”

Analysts said the IMF programme will not be completed in its “true sense”. The programme, due to end in June, is stalled at the ninth review since November last year.

“The programme ends in June, and we know what the IMF said today with regards to clubbing the reviews,” an analyst said.

The government has imposed taxes, raised energy tariffs and scaled back subsidies in an attempt to persuade the IMF to unlock funding, and its central bank has also raised the key policy rate to a record 21 percent.

Copyright © 2021 Independent Pakistan | All rights reserved

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