Pakistan seeks IMF loan tranche with promise of reforms

By: News Desk      Published: 01:01 PM, 26 Aug, 2020
Pakistan seeks IMF loan tranche with promise of reforms

As talks were held with the International Monetary Fund (IMF), Pakistan demanded the release of next tranche under the current loan programme, reported 24NewsHD TV channel on Wednesday.

Sources in the finance ministry say discussions were held in connection with the second quarterly review during which the IMF official received a detailed briefing on different economic indicators.

They added that Pakistan was implementing the loan programme – the 39-month Extended Fund Facility (EFF) signed on July 3, 2019 – and had shown progress in the reform programme.

According to these sources, financial indicators are positive in the first quarter of the current financial year and the current account deficit has also been reduced during the same period.

Moreover, they added, exports have increased in the month of July and the economy is starting to recover after the lockdown linked to the coronavirus pandemic.

As the finance ministry sources talked about executing the reforms programme it is actually related to three basic conditions set by the IMF: devaluation, increase in power and gas tariff, and reducing the current account deficit.

Many experts are of the view that these conditions/reforms are detrimental to the overall economy and the people. Hence, the dollar exchange rate is over Rs168 in both open market and inter-bank rate, causing inflation.

Also, people are already facing great burden on their pockets after the unending series of increase in power and gas tariff, which is also increasing the production cost for industries.