KARACHI: Pakistan’s finance ministry on Saturday denied media reports regarding the “failure” of talks with the International Monetary Fund, saying the negotiations to revive the $6 billion loan program were still underway.
The country’s top economic officials have been in conversation with the international financial institution since the beginning of the month to form the basis for the completion of the sixth review of the bailout package.
A successful completion of the review will enable the country to receive about $1 billion from the fund.
While the outcome of the dialogue is yet to be announced by the two parties, certain local media outlets have already proclaimed its failure.
“Media reports about the failure of talks amid ongoing negotiations are not true,” Muzammil Aslam, the spokesperson to the country’s finance chief, told Arab News. “As soon as the dialogue concludes, a statement will be issued for public information.”
The IMF country head in Pakistan, Teresa Dabán Sanchez, also said on Friday negotiations with Pakistan were still continuing to arrive at an understanding.
“We are looking forward to our continued discussions with the Pakistani authorities on the set of policies and reforms that could form the basis for the completion of the 6th review under the EFF [Extended Fund Facility],” she told Arab News.
The uncertainty surrounding the talks with the IMF has exerted pressure on Pakistan’s national currency which hit a historic low on Friday and closed at Rs174 against the US dollar.
The country’s stock exchange also suffered losses for the same reason, making analysts point out that failure of the IMF talks would negatively impact the country’s foreign currency inflows.
“A successful conclusion of these negotiations will ease pressure on the stocks and the rupee and will change the market sentiment,” Tahir Abbas, director research at Arif Habib Limited, told Arab News.
The IMF wants Pakistan to ensure domestic revenue mobilization, reduction in power sector arrears, electricity subsidy reforms and more operational autonomy to the central bank.
The government already raised power tariffs last week, making analysts claim it was trying to fulfil the conditions imposed by the international financial institution.
People familiar with the development said the IMF was insisting on increasing the revenue collection threshold set in the federal budget.
Pakistan said it wanted to collect Rs5.83 trillion ($39.2 billion) in revenue during the current fiscal year.
Economists believe additional revenue collection will be a tough challenge for the political administration in the current situation since prices of essential items are already toward a higher side.
Pakistan denies ‘failure’ of IMF talks, says negotiations still underway
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Pakistan denies ‘failure’ of IMF talks, says negotiations still underway
- The country’s finance ministry says a statement announcing the outcome of talks will be issued as soon as the dialogue is over
- Analysts say the IMF demand for Pakistan to collect additional revenue may be difficult to fulfil since the prices of essential items are already high
Pakistan police repel militant attack on Bannu checkpoint, five officers injured
- Police say several attackers killed or wounded in overnight assault in northwest Pakistan
- Incident comes amid surge in militant attacks Pakistan blames on Afghanistan-based groups
ISLAMABAD: Pakistani police said on Friday they repelled an overnight militant attack on a checkpoint in the northwestern district of Bannu, injuring five officers in an area that has seen a sharp rise in militant violence in recent years.
The attack took place late at night at the Sheikh Landak check post, located within the limits of Huweid police station in Bannu, a district of Khyber Pakhtunkhwa province near the Afghan border. Police said officers responded swiftly, preventing the attackers from overrunning the post.
Militant attacks in Pakistan have surged since 2021, particularly in Khyber Pakhtunkhwa and southwestern Balochistan, with security forces frequently targeted. Islamabad says the violence is largely driven by groups it refers to as Fitna Al-Khawarij, a term Pakistani authorities use for militants they say are linked primarily to the Pakistani Taliban and allied factions operating from across the border in Afghanistan. Pakistan has also accused India of backing militant networks involved in attacks, allegations New Delhi denies.
“Late at night, terrorists of Fitna Al-Khawarij carried out a cowardly attack on Sheikh Landak check post,” police said in a statement, adding that officers “displayed full courage, bravery and a timely response, successfully foiling the attack.”
Police said effective retaliatory fire caused “heavy human and material losses” to the attackers, with reports of several militants killed or wounded.
Five police personnel sustained minor injuries during the exchange and were immediately shifted to hospital for treatment, where they are receiving medical care, the statement said.
Following the attack, additional police units were deployed to the area and a search operation was launched to locate any remaining attackers.
Pakistan has repeatedly accused Afghanistan’s Taliban-led government of failing to prevent militant groups from using Afghan territory to launch attacks inside Pakistan. Kabul denies the allegation, saying it does not allow its soil to be used against any country.
The accusations have added to tensions between the two neighbors, who have also seen periodic border clashes over the past year.
