Amid a worsening economic crisis due to floods, high inflation and depreciating currency, Pakistan on Friday urged the International Monetary Fund (IMF) to ease harsh terms which require Islamabad to increase power tariffs and fuel taxes over next six months.
The reminder was given by Finance Minister Muhammad Ishaq Dar during a virtual meeting with IMF Mission Chief Nathan Porter, reported The Express Tribune. During the first interaction, Porter asked the finance minister about the specifics of any proposal to seek debt rescheduling from the Paris Club to whom Pakistan owes USD 9.7 billion.
Sources said that the IMF mission chief did not give any commitment but said that the IMF was looking into the Pakistani request. Nathan Porter also asked about the specifics of Pakistan’s decision to seek debt rescheduling from the Paris Club, reported The Express Tribune.
The finance minister informed him that the government was working on the modalities and that any final decision would be taken in consultation with the IMF.
Pakistan owes USD 9.7 billion to the Paris Club, including USD 8 billion to five countries – Japan, Germany, France, the United States and South Korea. Out of this, USD 1.1 billion is maturing this year.
“The finance minister further reaffirmed the government’s commitment to undertake the reforms envisaged under the programme,” said the statement.
“The finance minister recalled the meeting of Prime Minister Shehbaz Sharif with the IMF managing director during his visit to the US in which the IMF MD vowed to support Pakistan in this difficult situation caused by the flash floods and reconsider the programme conditions,” said a statement issued by the finance ministry after the brief virtual meeting.