ISLAMABAD: Progress in talks between Pakistan and the International Monetary Fund has stalled due to delay in accepting the demands of the IMF.
The economic team is also awaiting orders from Prime Minister Shahbaz Sharif.
According to details, the talks between Pakistan and the IMF started four days ago on May 18, but for three consecutive days there were differences between Pakistan and the International Monetary Fund on the macroeconomic framework.
The economic team and the IMF failed to reach a consensus on issues such as taxes and duties, electricity subsidies, budget deficits, spending and inflation, and economic growth due to the ambiguity of subsidies and tax measures.
Read more: Weekly inflation rises in Pakistan
Talks between the IMF and Pakistan will continue till Wednesday while the final round will start from Monday. Today, Finance Minister Miftah Ismail will leave for Doha along with other officials. Minister of State for Finance Dr. Ayesha Pasha is awaiting major approval.
The Minister of State for Finance says that we have prepared two scenarios. The first plan depends on the permission of the leadership in implementing difficult decisions. If not approved, there is another plan and a backup plan. The negotiation process is moving forward.
So far, the government has failed to withdraw the subsidy on petroleum products since May, despite promises, on which the PML-N leadership says the Sharif brothers are reluctant to raise prices of electricity and petroleum products.
