Pakistan Prime Minister Shehbaz Sharif said on Friday that the conditions put forward by International Monetary Fund for availing $6.5 billion bailout were beyond imagination. Sharif said they had no other choice but to agree to the conditions for availing the loan.
“Our economic challenge at this moment is unimaginable. The conditions we have to fulfil (to complete the IMF review) are beyond imagination,” Sharif was quoted saying by Dawn. The Pakistan Premier reportedly made the comments addressing an Apex Committee meeting in Peshawar.
An IMF delegation led by Nathan Porter is discussing fiscal consolidation measures the institution needs from Pakistan to clear a 9th review of its Extended Fund Facility. An IMF delegation is in Pakistan to restart talks stalled since November for $2.5 billion funds yet to be disbursed.
"You all know we are running short of resources, Pakistan at present was facing an economic crisis that's beyond imagination," Sharif was quoted saying by Reuters.
Pakistan's central bank reserves at present stand at $3.09 billion, the lowest since 1998 and not enough to cover the cost of three weeks of imports, Reuters reported.
Reuters reported that the IMF's demands aimed at controlling the country's budget deficit have led to Pakistan leaving its currency to market-based exchange rates and hiking fuel prices.
