Pakistan Makes Efforts to Revive IMF Deal at Cost of Inflation in Pakistan

Inflation in Pakistan has increased during Shaukat tarin the finance minister of Pakistan to the USA to meet IMF and World Bank officials to reschedule the abandoned deal of $6 Billion.

Pakistan made a deal with IMF after the current Govt realized in the early months of their tenure that without IMF deals they can’t avoid bankruptcy.

Pakistan started its negotiation with IMF when Asad Umar was Finance Minister who was replaced by Abdul Hafeez Sheikh.

Now Pakistan Finance Minister is Shaukat Tarin who is in Washington DC to reinstate the IMF deal and to get $1 Billion.

Shaukat Tarin is more positive about the success of the deal with IMF till now.

During Shaukat Tarin’s visit to the United States, Pakistanis got shocked by the increasing rates of electricity and petroleum products.

People will be shocked to determine about 70% rise happened only in per-unit price in the power sector.

In June 2018 per unit of electricity price was 10.50 which is now 17.84 per unit.

Currently during last week amid Shaukat Tarin’s visit to the US, the electricity per-unit price has been increased by 1.39 rupees.

These 1.39 rupees rise in per-unit price would produce additional 140 Billion Rupees and a reduction in subsidy will further generate to Rs.25 Billion for the federal board of revenue.

Shaukat Tarin seems positive with the IMF deal and stated that IMF authorities wanted to revalidate data provided to them to generate further Rs.175 Billion higher than the target.

Further to this Shaukat Tarin said that Pakistan has met all the given targets and just accepted the terms of IMF and the world bank which were not out of the set limits of Pakistan.

Shaukat Tarin is expected to have a joint statement to be issued with IMD officials about the approval of the loan and sanctioning of $1 Billion this week and his re-election from the senate as Finance Minister on a vacant seat from KPK.

Shaukat Tarin has sent positive signals to the Pakistani market and he would also visit New York for policy revalidation by IMF and World Bank.

Inflation in Pakistan

During the current visit of Shaukat Tarin in the USA, prices of petroleum products have also be increased with a big margin.

All this rise in prices is being seen in the market with the context of Shaukat Tarin visit to IMF for the deal disbursement

 

Leave a Comment