ISLAMABAD: The International Monetary Fund (IMF) said there was no discussion on Pakistan’s deals with China.
IMF sources revealed the inside story of the July 2023 meeting with political parties.
They said the IMF does not negotiate bilateral agreements of member countries.
During the meeting, a stand-by agreement was discussed and it was proposed to freeze the development budget to reduce the deficit. If the circular debt was not controlled, Pakistan would have to increase utility rates, the sources added.
They said the IMF described Pakistan’s economic progress as “encouraging” but pointed out the challenges it still faces. She urged Pakistan to deal with political instability for sustainable growth.
The donor expressed satisfaction with the implementation of its recommendations in the contingency agreement.
Sources said the ongoing standby agreement will expire in April and a new program will be discussed after that. It is too early to talk about a new loan program, they added.
IMF sources said that it is necessary to expand tax revenues and the tax base. The donor highlighted improvements in the energy sector.
The transmission and distribution system needs to be improved, while prices need to be systematically increased so that inflation does not increase.
Sources said the donor left it to Pakistan to seek financial support from financial institutions and friendly countries.
