ISLAMABAD: Former Vice President of FPCCI Atif Ikram Sheikh lauded decision of Prime Minister Shehbaz Sharif to resume stalled IMF programme which is necessary to improve limping economy and infuse confidence in jittery investors. After an unnecessary delay, government has decided to step back from its rigid position on IMF’s bailout conditions and lean towards an early resumption of stalled loan programme which is very sensible choice, he said. Atif Ikram Sheikh who has also served as Chairman PVMA said that government has invited lender to start negotiations to sort out all outstanding issues.

These issues have impeded IMF’s ninth review for almost four months and delayed disbursement of next loan tranche which has destabilised economy, he said. It is said that government has completed its workings and now it should waste no time to close deal that is central to stabilising Pakistan’s weakening external sector.

Atif Ikram Sheikh said that it remained to be seen whether IMF will send its team by end of next week or if it will wait for Pakistan to execute actions needed to meet its conditions before formal meeting.

Implementation of IMF conditions including market-based exchange rate, increase in electricity and gas rates, additional taxes to contain budget deficit within original programme targets, removal of import curbs, etc. will further make life difficult for masses and damage PML-N’s political capital ahead of polls in Punjab and KP, as well as approaching general elections but there is no other option, he observed.

Further delay in repairing relationship with IMF will only worsen political price his party will have to pay. But our economic managers want to get financing first and delay some conditionalities.

Saudi Finance Minister’s statement that support to allies would be aligned with multilateral agencies and would also depend on countries’ willingness to revamp their economy indicates that investment and other financial support plans announced recently by friendly countries for Pakistan will not materialise without an IMF programme.

Published in The Daily National Courier, January, 23 2023

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