Pakistan and the International Monetary Funds have gone to the table again to discuss the possibility of releasing the stalled $1billion tranche. The country is under serious pressure to deal with the looming economic crisis amid the fast depleting foreign reserves.
Pakistan faces a tough economic situation where the rupee is fast losing its value and the trade deficit is widening. When the two sides last met, the IMF asked the finance ministry to get rid of the fuel subsidies as the country could not afford them.
But, Prime Minister Shehbaz Sharif has refrained from increasing the petroleum prices despite multiple suggestions by the Oil and Gas Regulatory Authority, Pakistan. According to various media reports, the PML-N does not want to risk its position by taking unpopular measures.
The meeting between the two sides is expected to continue till next week. The Pakistani delegation is hopeful of “finding a common ground” with the IMF regarding the fuel subsidies.