Pakistan faces tough conditions for IMF program restoration

By: News Desk
Published: 09:54 PM, 28 Feb, 2023
Pakistan faces tough conditions for IMF program restoration
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Pakistan faced tough conditions for the restoration of the International Monitory Fund (IMF) to strengthen the national economy.

According to the sources, it is the first time in the history of the IMF that Pakistan is being forced to implement the conditions before a staff-level agreement.

Generally, the implementation of the preconditions is stipulated before the executive board meeting, the sources said adding that Pakistan is facing a situation similar to 1998 in the rehabilitation program.

The sources said a new draft of a Memorandum of Economic and Finance Policy (MEFP) from the IMF is being given with new conditions to Pakistan every next day and extra demands are being made by making changes in the already agreed clauses in the draft.

The sources also said that there is pressure on Pakistan for four more conditions for the Staff-Level Agreement including a surcharge of Rs3.82 per unit on electricity will have to be levied on a permanent basis instead of four months despite the fact that Finance Ministry Ishaq Dar is ready to impose a surcharge for four months.

While the IMF is still emphasising Pakistan to increase the interest rates and assurance of external financing before the staff-level agreement, the sources said.

It is worth mentioning that a meeting of the Monetary Policy Board has been called on March 2 to raise the interest rate.

Categories : Business