Pakistan Economic Crisis: Pakistan's prime minister Shehbaz Sharif said earlier this month that IMF's demands were “beyond imagination”.
Pakistan Economic Crisis: A woman checks rice prices at a main wholesale market in Karachi. (AFP)
But the $6.5 billion loan program could not be decided upon even after IMF staff-level discussions that extended past the scheduled end date of February 9. IMF wants Pakistan to strengthen it fiscal position with permanent revenue measures while reducing untargeted subsidies and allowing the exchange rate to be market-determined, Bloomberg reported. IMF also wants Pakistan to make sure that the country's energy sector is viable.
“The timely and decisive implementation of these policies along with resolute financial support from official partners are critical for Pakistan to successfully regain macroeconomic stability and advance its sustainable development,” IMF said in a statement.
“Virtual discussions will continue in the coming days to finalize the implementation details of these policies," it added.
