“All roads to restoring economic stability lead through IMF,” PBC said in a series of tweets. “Without revival of the programme, no further help from friendly countries is likely,” PBC said.
IMF
Even after forging an agreement with the IMF, Islamabad will have to persuade the Fund to restart a $6 billion programme that has been inactive for some time.
IMF Resident Director in Islamabad Esther Perez Ruiz said that the IMF team is expected to hold discussion with Pakistani officials about seventh review in this month, but she neither indicated the date of talks nor the venue of meetings.
Miftah Ismail’s one of the important meetings would be at the US Treasury Department, as Pakistan wants to improver ties with the world’s largest economy, damaged by immature public statements by former prime minister Imran Khan.
Inflation is expected to rise from 8.9% in 2021 to 11.2% in 2022 before falling to 10.5% in 2023
“PM Shehbaz has asked me to engage with the IMF, as the government is keen to remain in the IMF programme,” confirmed Dr. Miftah Ismail.
Government’s choice to maintain oil prices the same conveyed the IMF the incorrect message. The IMF programme cannot be revived unless the strategy is changed and they abolish the relief mechanism.
China has agreed to roll over this commercial loan and Chinese officials are working out the technical details as a consortium of three banks was involved in it. The Chinese side is awaiting the visit of newly elected PM Shehbaz Sharif or a formal request from him.