IMF rejects Pakistan’s circular debt management plan for a potential bailout in 7 billion dollar loan programme

The International Monetary Fund, IMF, has rejected Pakistan government’s circular debt management plan. During talks on a potential bail out, it asked the Pakistani authorities to raise the electricity tariff to restrict the losses of the cash-bleeding power sector. The IMF delegation headed by Nathan Porter is in Islamabad for discussing the ninth review of a 7 billion dollar loan programme.

Meanwhile, Pakistan Prime Minister Shehbaz Sharif has said, the IMF was giving Islamabad a tough time on the bailout. Pakistan’s forex reserves have dropped to critically low levels which can cover merely 18 days of imports. Inflation has risen to a 48-year-high in Pakistan and citizens are struggling to afford basic food items and amenities.