Pakistan Crisis: Government Putting Up Brave Face Amid Deadlock Over IMF Bailout, Says Report

Islamabad, February 9: The Pakistan government is putting up a brave face amid a deadlock on securing a bailout from the International Monetary Fund (IMF) that is needed to avert a nearing sovereign default, reported the Dawn newspaper.

According to the report, a clear roadmap on external financing and domestic budgetary steps, coupled with substantial energy cost adjustments, should have led to sharing of a draft Memorandum of Economic and Fiscal Policies (MEFP) by the visiting IMF mission wit the authorities at least a day before scheduled conclusion of talks on February 9. Pakistan Seals $6 Billion IMF Bailout Package, Dumps Imran Khan's Pre-Poll 'Welfare State' Vision.

A senior government official was quoted saying in the report, "As of Wednesday night, we have not received the draft MEFP. He said reservations on the final plan of action both in terms of fiscal measures and external funding sources were still there." The gap estimated by the IMF for the current fiscal year is on the higher side of USD 6 billion. Pakistan: New Govt Raises Fuel Prices Over IMF Bailout Talks, Petrol At Pak Rs 179/lt.

"We are very close to the finalisation," said Minister of State for Finance and Revenue Aisha Ghaus Pasha, as quoted by Dawn. She said the MEFP would be handed over to Pakistan by the IMF once all issues are finally settled, the report said, adding that she said a lot of things had been settled and they required clarity on some of them which the government team was trying to address.

US-based NGO Human Rights Watch (HRW) has said the International Monetary Fund (IMF) should work with the Islamabad government to strengthen social protection and mitigate harm to the most vulnerable by advancing economic rights, the Dawn reported.

According to HRW, the IMF should work with the Pakistan government by broadening protection systems and minimising reform measures that risk further harm to the most vulnerable people.

Pakistan is currently facing one of the worst economic crises as a result of soaring poverty, inflation and unemployment. It has jeopardised the health, food and living standards of millions, the HRW said in a statement issued on Monday.

Pakistan's negotiations with the IMF are meant to clear the IMF's 9th review of its Extended Fund Facility paving way for the release of a USD 1.1bn tranche, according to Dawn.

According to HRW, the inflow would ease the crippling shortage of foreign exchange and unlock access to other funding, including from multilateral and bilateral donors, which is defending human rights worldwide.

"Millions of Pakistanis have been pushed into poverty and denied their fundamental social and economic rights," said Patricia Gossman, associate Asia director at Human Rights Watch, as quoted by Dawn.

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