Ongoing IMF-Pakistan talks aren't likely to produce any result
Business
Process to continue after the visiting team leaves Islamabad
- Finance ministry presents plan to cut government expenditures by over Rs300 in 2024-25
- All BPS-1 to BPS-16 vacant posts to be abolished, Centre won't fund provincial development projects
ISLAMABAD (Dunya News/Web Desk) – With the Washington-based lender pushing for harsh conditions, sources in finance ministry say it is likely that the staff-level agreement won’t be reached between Pakistan and the IMF (International Monetary Fund) as the visiting team is scheduled to leave the country this week.
As talks are still in progress on the policies issues, the sources say, the process won’t completed and the IMF will issue a report on the latest economic status of Pakistan after returning to Washington.
However, the sources say two sides would continue with the discussion even after conclusion of the IMF mission’s visit.
AUSTERITY MEASURES
The finance ministry has shared a plan with the IMF which suggests measures to cut government expenditures by over Rs300 billion during the next fiscal year.
One of these proposals says the federal government won’t fund any of the development projects carried out by the provinces.
At the same time, the plan says all the currently vacant BPS-1 to BPS-16 posts would be abolished, as Islamabad is following the advice of cutting the government size.
Earlier, the government in a similar but much broader move had said that they were working on a plan for pension reforms covering all the state institutions and all the stakeholders would be taken into confidence on the subject.
On the other hand, the infrastructure projects would be launched under the public-private partnership model and no development funds are to be reserved for the assembly members.
Meanwhile, the Centre would also establish any new university and the provinces would responsible for funding the varsities falling under their domain.
POLICY-LEVEL TALKS
Earlier on Monday, the IMF and Pakistan launched policy-level talks, as the cash-starved Islamabad is looking forward to clinch another deal with the Washington-based lender while meeting all the tough conditions being attached to it.
At the same time, the two sides are also going to set the macroeconomic targets for the next fiscal year’s budget, as the IMF is hell-bent to impose policies including monetary tightening [higher interest rates], energy tariff hikes, market-based exchange rate and privatisation.
Many experts believe that the higher interest rates are one of the ill-advised policies suggested by the IMF, which has crippled the country’s economy and the State Bank of Pakistan must start the rate cut cycle swiftly.
