Jim Watson—AFP
State Minister for Finance and Revenue Aisha Ghaus Pasha on Thursday reiterated the government’s commitment to continue a stalled International Monetary Fund (IMF) program, adding that it wants to achieve this without placing further burdens on the common man due to the harsh conditions required by the lender.
Addressing the media after a meeting of the Senate Standing Committee on Finance, she confirmed that the ruling coalition’s economic team had met Prime Minister Shehbaz Sharif several times to deliberate on the IMF program. Explaining that the premier was not in favor of imposing blanket taxes that impacted the impoverished, she said the government would try to convince the IMF of some relief due to the impact of last year’s floods, which caused $30 billion in damages. “The people are already suffering due to the flooding and they are not in a position to afford any further measures,” she said.
To a question, she could not confirm when an IMF team would reach Pakistan for the ninth review of its program, but assured journalists that discussions with the lender were continuing.
Ready for review
According to local media, the prime minister has approved a request of the Finance Ministry to send a letter to the IMF requesting it send its review mission to Islamabad next week. Noting that it been had decided that there was “no choice” but to revive the IMF program on an urgent basis, authorities told journalists on Thursday night that they hoped the lender would respond positively.
Multiple media reports have maintained that P.M. Sharif has finally approved “tough” decisions that had been on the backburner to revive the IMF program, including raising fuel, electricity and gas tariffs and allowing the rupee to depreciate against the U.S. dollar. However, fears persist that the IMF might find these moves insufficient and a meeting has been sought to determine exactly what is required. Efforts are also still underway to have the IMF ease some of its conditions.
Key to the government’s dithering, as confirmed by Planning Minister Ahsan Iqbal during a recent appearance on Geo News, has been fears of the inflation resulting from the IMF’s requirements triggering even further political instability.