Canada Global(Web News)Negotiations for the next installment of the $710 million loan received under the $3 billion standby arrangement between the government of Pakistan and the IMF will be held on November 2.
The IMF team in the negotiations will be led by Nathan Porter. The Government of Pakistan is optimistic about the success of the negotiations despite the challenges from the external sector. If the government announces general elections, it will strengthen the hands of the finance ministry during negotiations.
According to Esther Pearce, the representative of the IMF in Pakistan, the International Monetary Fund had proposed a date of November 7 for the talks, but the government of Pakistan said that it had collected the data needed for the talks
. The difference will be found in external financing. The government of Pakistan has estimated a shortfall of four and a half billion dollars in external financing despite Eurobonds and commercial loans. But it seems more than guesswork. A senior government official said the talks will also discuss the rupee’s exchange rate against the dollar and monetary policy.
After remaining stable for a month, the rupee has started to fall again in recent days. This will also be discussed. According to a federal minister, the condition of reducing circular debt of power division has been fulfilled.
The IMF had imposed a condition to end subsidies on oil, but the government is giving cross-subsidies to domestic, export and industrial gas consumers.
