Prime Minister Shehbaz Sharif on Friday said that the International Monetary Fund (IMF) delegation, which is visiting the country for discussions on the ninth review of a $7 billion loan programme, was giving an “adamant time” to Pakistan.
He also said that the government would have to agree to IMF bailout conditions that are “beyond imagination”.
The IMF delegation visited Pakistan on Tuesday for last-ditch talks to revive vital financial aid that has stalled for months.
As of now, Pakistan’s reserves have been at a low level of $3.09 billion, which can only cover three weeks of imports, said Arif Habib Limited.
Completing the IMF conditions would help Pakistan disburse $1.12bn and unlock inflows from friendly countries and multinational companies.
Pakistan is facing a daunting fiscal gap of 2 to 2.5 trillion dollars. As a result, it needs a rugged and robust measure to bridge the substantial fiscal gap.
Recently Pakistan has taken several measures to meet the IMF review, including increasing petroleum prices and allowing a market base exchange rate; however, that seems too late and little. The bailout conditions want more measures to increase revenues.
The two sides are expected to complete the technical-level talks in the first round, which will conclude on Friday, followed by the policy-level negotiations to complete by February 9.