SUMMARY of the Article “IMF’s Concern,” Dawn, November 17th, 2024
The article highlights the IMF’s recent unscheduled discussions with Pakistani authorities on the ongoing $7 billion loan program, which concluded without the usual end-of-mission statement, leaving the public uncertain about the outcomes. The IMF expressed significant concerns over delays in securing $2.5 billion in foreign loans, including a $1.2 billion Saudi oil facility, and a revenue shortfall of Rs190 billion in tax collection for the July-October period. Additionally, the slow progress on the National Fiscal Pact and delays in privatizing state-owned enterprises (SOEs) have raised alarms, as provinces have yet to align their farm and property tax rates with federal standards. These lapses indicate that the government is struggling to meet several structural benchmarks crucial for economic stability. Despite having time before the formal review in February or March, these failures threaten Pakistan’s access to the next $1 billion tranche and erode market confidence. The IMF’s insistence on strict compliance, exemplified by its decision to send an early mission, underscores its skepticism about Pakistan’s » Read More…