IMF demands details of Islamabad’s deal with Beijing, surge in power price

Islamabad , November 20 (Online): The International Monetary Fund (IMF) has demanded Pakistan to provide details of its financial deal with China besides demanding surge in electricity price and de-value of currency.
However, the PTI government has decided to not share details of Pakistan’s financial deal with China. Besides, the IMF has also demanded up to 22 per cent increase in electricity charges, introduction of reforms in FBR, increase tax circle and de-value of currency. However, Pakistan has so far resisted all anti-public demands of IMF.
Due to the reasons, the dialogue between Pakistani official quarters and IMF team could not reach at the conclusion. The dialogue was supposed to reach at conclusion but due to Pakistan’s resistance the dialogue could not be succeeded.
The sources at the Finance ministry said that the IMF delegate was not ready to show fluctuation in its conditions and the Pakistani team also.
Pakistan has also decided to not share details of its deal with China for financial package. It is pertinent to mention here that surge in the dollar price in the international market is another troubling factor for the PTI government in the prevailing financial crisis.
The sources said that the first phase of the dialogue between Pakistan and IMF had been concluded without any conclusion and the IMF team has left the country today. The visiting team will present its recommendations to the relevant office on November 22. The IMF team will revisit Pakistan in January 15 next year for the second phase of the dialogue.
The sources, however, said that Pakistan and IMF team were hopeful that they would be able to reach at consensus in the second phase of the dialogue.
They said that the deadlock persists on upsurge in electricity prices, taxes, and de-valuing Pakistan’s currency but Pakistan was not ready to accept these conditions. The IMF had demanded 20 to 22 per cent increase in electricity price.
The IMF delegation was in Pakistan for the past two weeks. The delegate met with the officials of finance, FBR, trade and commerce and State Bank governor. Three rounds of dialogue was held in which the IMF team expressed its reservations over the performance of different stakeholders.
The IMF also demanded reforms in the Federal Bureau of Revenue (FBR), the sources said.