Now Reading: Pakistan on course for IMF board approval after staff-level deal
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Pakistan on course for IMF board approval after staff-level deal
Pakistan has reached a staff-level agreement with the International Monetary Fund for the release of the final tranche of $1.1 billion under the $6 billion Extended Fund Facility. The IMF mission chief…
The Story in Brief
Pakistan has reached a staff-level agreement with the International Monetary Fund for the release of the final tranche of $1.1 billion under the $6 billion Extended Fund Facility. The IMF mission chief for Pakistan, Nathan Porter, said in a statement that the agreement is subject to approval by the IMF's Executive Board, which is expected to consider it in late April or early May. The board's nod will unlock the last disbursement of about $1.1 billion.
The staff-level pact comes after Pakistan completed all prior actions, including the passage of a mini-budget and an increase in electricity tariffs. The government had been under pressure to meet IMF conditions after a delay of nearly two months. Prime Minister Shehbaz Sharif said he hoped the board's approval would come soon, helping the country avert a default. The IMF has expressed concern over high inflation, which hit 24.5 per cent in March.
The Indian Opinion
The predictable narrative that the IMF is unfairly squeezing Pakistan misses the mark. The Fund simply wants what every lender wants: repayment. The real story is that Pakistan's elite have evaded taxes for decades, forcing the state to borrow from the Fund again and again. The mini-budget and tariff hikes are painful, but so is the alternative of default. Watch whether the next government, whoever wins the elections, keeps these reforms or rips them up. That will tell us if Pakistan has finally learned its lesson.
Sources (12): aajtak.in, aajtak.in (2), 123telugu.com, 123telugu.com (2), 123telugu.com (3), tupaki.com, tupaki.com (2), tupaki.com (3), tupaki.com (4), tupaki.com (5), tupaki.com (6), tupaki.com (7)
This story was synthesised by AI from the 12 sources linked above.
Updated: this story now draws on 12 sources.
