ISLAMABAD – The International Monetary Fund mission arrived in Pakistanlate Monday to discuss the stalled ninth review of the crucial fundingprogramme, with the country’s economy worsening with each passing day.
Reports in local media suggest that the IMF mission chief for PakistanNathan Porter arrived in the capital last night to start the second phaseof policy negotiations to finalise a memorandum of economic and financialpolicies (MEFP).
Islamabad and US-based lender will engage in crucial talk from today as thecountry of over 220 million is facing a severe acute balance of paymentscrisis while the coalition government is doing all-out efforts to securemuch need funds, with the country’s forex reserves held by central bank areless than one month of imports cover.
Pakistan is eyeing to secure $1.8 billion, which was delayed in the wake ofthe government’s reluctance to accept harsh conditions, however, in recenttimes the top officials including Prime Minister Shehbaz Sharif mentionedthat they are ready to agree on stringent conditions placed by the globallender.
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The government is desperate to woo the IMF mission as the local currencyhas plunged to a historic low against the dollar after an exchange cap waslifted.
Amid the crucial talks, the Sharif-led government is expected to announcenew policy measures and start upfront implementation, to address a circulardebt of over Rs2.5 trillion in the power sector, expenditure cuts, and taxmeasures.
