The International Monetary Fund (IMF) has not immediately given its endorsement to proposals presented by Pakistan's interim government regarding reductions in industrial electricity prices, the resolution of a significant portion of circular debt, and the inclusion of Pakistan International Airlines (PIA) debt in the public debt. According to media reports, the IMF has raised questions about the rationale behind the interim government's urgency in pursuing these measures, particularly considering the Election Commission of Pakistan's (ECP) directive barring decisive action on PIA privatization.
Government sources reported that the IMF has requested further details regarding the economic and legal feasibility of these proposals. While the IMF neither rejected nor accepted the proposals outright, it indicated a need for more thorough consideration, which would likely occur once an elected government assumes office. Additional discussions on the proposals are expected after Pakistani authorities provide the requested information and the IMF conducts internal reviews.
The caretaker government is eager to implement these proposals before the end of its term. However, the IMF's cautious approach suggests that further deliberation is necessary.
These meetings occurred shortly before Pakistan's general elections, indicating a sense of urgency from the Pakistani authorities to address these economic issues. However, the IMF's response suggests that a more comprehensive assessment of the proposals is required before any decisions can be made.
(With Agency Inputs)
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