The International Monetary Fund (IMF) has stated that it is awaiting”necessary financing assurances” before the successful conclusion of reviewtalks with Pakistan.
This has dampened expectations for a deal until Pakistan secures theremaining $3 billion of the total $6 billion loans it urgently requires tobridge the external financing gap. The government is striving to obtaincommitments for the rest of the loans, including from foreign commercialbanks, but negotiations may take several weeks.
The IMF has expressed concerns about Pakistan’s economic policies,including the need for a positive inflation-adjusted interest rate. PrimeMinister Shehbaz Sharif’s recent announcement of petrol subsidies formotorcyclists and small car owners has further widened the trust deficit.
Pakistan’s Finance Minister Ishaq Dar on Saturday announced an increase ofRs10 per litre in the price of petrol.
The decision has increased the petrol price from Rs272 per litre to Rs282per litre.
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Dar announced the increase in a late night live address to the nation. Hesaid the prices of diesel and light diesel would remain unchanged at Rs293and Rs174.68, respectively.
On Friday, Finance Minister Ishaq Dar had announced that the United ArabEmirates had given an assurance to the IMF for a $1 billion loan toIslamabad. Saudi Arabia had already made assurances for a $2 billion loan,according to Minister of State for Finance Dr Aisha Pasha.
