Islamabad: Pakistan’s chances of reviving its $6.5 billion International Monetary Fund (IMF) programme have dimmed, as the government has failed to meet several key conditions set by the lender. Prime Minister Shehbaz Sharif on Sunday said that Pakistan had met all the conditions set by the IMF, but the lender has not yet agreed to revive the program.
The IMF has been asking Pakistan to raise fuel prices, cut subsidies, and take other tough measures to reduce its budget deficit. The government has been reluctant to take these measures, fearing that they will lead to popular unrest.
The IMF has also been concerned about Pakistan’s widening current account deficit. The deficit widened to $13.8 billion in the first nine months of the current fiscal year, compared to $10.8 billion in the same period last year.
The IMF has said that it will not release any more funds to Pakistan until the government takes concrete steps to address its economic problems.
The failure to revive the IMF programme will have a serious impact on Pakistan’s economy. The country is already facing a severe balance of payments crisis, and the IMF programme was seen as the only way to avert a default on its external debt.
The government is now looking for other ways to raise money, including by selling bonds to foreign investors. However, it is unclear how much money the government will be able to raise through this method.
The failure to revive the IMF programme is a major setback for the government of Prime Minister Shehbaz Sharif. The government came to power in April with a promise to improve the economy, but it has so far been unable to make any significant progress.
The government is now facing a difficult choice. It can either take the tough measures that the IMF is asking for, or it can try to find other ways to raise money. If the government does not take any action, the country’s economic problems are likely to get worse.
The IMF programme was supposed to help Pakistan get back on track after years of economic mismanagement. However, the failure to revive the programme is a sign that the country’s economic problems are more serious than previously thought.