When the talks come to an end, the IMF demands that Pakistan overhaul its energy industry
May 24, Islamabad, Pakistan: According to ARY News, the International Monetary Fund (IMF) has emphasized the need for changes in Pakistan’s energy sector as a crucial first step towards improving the country’s economy.
The IMF said in a statement that talks with Pakistani officials ended well on Thursday. This was the end of negotiations that had begun when an IMF team headed by mission commander Nathan Porter arrived in Pakistan on May 13.
According to Porter, “The mission and the authorities will continue policy discussions virtually over the coming days, aiming to finalise discussions, including the financial support needed to underpin the authorities’ reform efforts from the IMF and Pakistan’s bilateral and multilateral partners.”
He further identified important areas for enhancement, stating, “Continue progress towards low and stable inflation by appropriate monetary and exchange rate policies; improve public service provision through state-owned enterprise (SOE) restructuring and privatization; and promote private sector development by securing a level-playing field for investment and stronger governance.”
Pakistan is interacting with the IMF for a new loan program, perhaps requesting at least USD 6 billion, after a short-term USD 3 billion program concluded last month. It is also anticipated that the nation will apply for further IMF funding via the Resilience and Sustainability Trust.
The IMF had already issued a warning, highlighting the current economic issues and cautioning that downside risks for the Pakistani economy were still quite significant.
According to ARY News, Porter restated the objectives of the reform program, highlighting its ambition to move Pakistan from economic stability to strong, inclusive, and resilient development.
Pakistan may potentially apply for additional assistance from the IMF via the Resilience and Sustainability Trust. Pakistan is anticipated to request a minimum of USD 6 billion under the new program. The IMF has emphasized that the amount of the next loan package is not as crucial as concentrating on reforms to revive Pakistan’s economy. The IMF issued a warning earlier this month, stating that the Pakistani economy is still facing serious risks.
