KARACHI: A final agreement on a financial assistance package from the International Monetary Fund will be announced on Monday, a top Pakistani government official said on Saturday, as talks continued to chalk out the final details of a bailout at a time of worsening economic outlook for the South Asian nation of 208 million people.
The long-delayed rescue package would be Pakistan’s 13th IMF bailout program since the late 1980s.
A visiting IMF team was expected to wind up negotiations by May 10 but the finance ministry announced on Friday night that talks would continue over the weekend.
“The talks will continue for two days (Saturday and Sunday),” Yousaf Baig Mirza, Special Assistant to the Prime Minister on Media, told Arab News. “The final outcome will be on the day after tomorrow (Monday).”
Prime Minister Imran Khan has called a meeting on Monday to review a draft of the deal, local media reported.
Khan, who assumed power in last August, inherited a wobbly economy but has faced growing criticism for failing to steady the ship. He has also been frustrated by low tax-collection rates.
Last month he carried out a sweeping cabinet reshuffle, including appointing experienced technocrat Abdul Hafeez Shaikh as his new de facto finance chief after removing Asad Umar. This month, Khan also changed the central bank governor and tax collection chief.
One of the key sticking points during the IMF bailout discussions so far has been how to manage the local rupee currency, whose exchange rate the central bank underpins in a de facto managed float system. But the country has been burning through its foreign currency reserves to defend the rupee.
Pakistan reportedly has agreed in latest talks to implement a flexible exchange rate, hike the policy rate, withdraw subsidies, reignite a privatization program, and curtail borrowing from the central bank.
The central bank in March cut its economic growth estimates, forecasting the economy would expand 3.5 to 4 percent for the year to the end of June, well short of a government target of 6.2 percent. The IMF paints a gloomier picture, predicting growth of 2.9 percent in 2019 and 2.8 percent next year.
Pakistan’s consumer price inflation in March rose to its highest since November 2013, hitting 9.41 percent year-on-year, before easing to 8.82 percent in April.
Outcome in IMF bailout talks expected on Monday, Pakistan says
Outcome in IMF bailout talks expected on Monday, Pakistan says
- Long-delayed package will be Pakistan’s 13th IMF bailout since the late 1980s
- PM Khan calls meeting on Monday to review draft of deal
Pakistan PM gives 48 hours to draft fuel-saving plan as global oil prices surge
- Government warns against hoarding after sharp fuel price hike amid Middle East tensions
- PM wants provinces to enforce anti-profiteering measures and prevent public exploitation
ISLAMABAD: Prime Minister Shehbaz Sharif has asked his administration to formulate a strategy for fuel conservation and austerity in government affairs within 48 hours after a sharp rise in global oil prices pushed the country to increase domestic fuel rates, a senior minister said on Saturday.
The directive comes a day after the government raised petrol and diesel prices by Rs55 ($0.20) per liter, citing a surge in international energy prices triggered by escalating conflict in the Middle East after Israel and the United States launched attacks on Iran. The situation has rattled global oil markets and threatened key shipping routes.
Pakistan’s Information Minister Ataullah Tarar said Sharif had instructed officials to urgently prepare a practical plan aimed at reducing fuel consumption and promoting austerity across government institutions.
“The prime minister has given 48 hours to formulate an actionable strategy on savings, austerity and simplicity in government affairs,” he said in a social media post on X.
Tarar said Finance Minister Muhammad Aurangzeb and Petroleum Minister Ali Pervaiz Malik had also been tasked with consulting the country’s four provincial chief ministers to coordinate measures against fuel hoarding and ensure strict enforcement of government directives.
He informed the ministers had been asked to ensure that speculation and profiteering in fuel markets were prevented, adding that authorities would take strict action against violators.
“The prime minister has directed that no leniency be shown to elements involved in exploiting the public,” he said, warning that licenses of those petrol pumps violating government orders could be revoked.
Tarar also urged the public not to pay attention to rumors regarding petroleum supplies or pricing, saying the government and relevant ministries would continue to release verified information as the situation evolves.
He said Pakistan was not alone in facing rising energy costs, noting that many countries were grappling with similar pressures due to volatility in global oil markets.
Pakistan relies heavily on imported fuel to meet its energy needs and is particularly vulnerable to global price shocks, which can quickly push up inflation and strain the country’s fragile external accounts.
