Pakistan's talks with IMF over bailout package hit a snag: What report said

Pakistan Economic Crisis: The talks hit a snag as the two sides were not able to reach an agreement on external financing estimates and precise domestic fiscal measures, the Dawn newspaper reported.

Talks between the Pakistan government and IMF for securing a bailout packaged to avert the country's economic crisis have hit a rough patch, it was reported. The talks hit a snag as the two sides were not able to reach an agreement on external financing estimates and precise domestic fiscal measures, the Dawn newspaper reported.

Pakistan Economic Crisis: A woman checks rice prices at a main wholesale market in Karachi. (AFP)

“As of Wednesday night, we have not received the draft MEFP,” a senior government official told the newspaper, adding that IMF's “reservations on final plan of action both in terms of fiscal measures and external funding sources were still there”.

Pakistan entered a 6 billion dollars International Monetary Fund (IMF) programme during former PM Imran Khan's government in 2019. The package was increased to USD 7 billion last year. Currently, ninth review of the programme is due for the release of USD 1.18 billion.

Minister of State for Finance and Revenue Aisha Ghaus Pasha said: “We are very close to the finalisation", as per the report adding that the package will be decided on as soon as all the issues are settled. She also informed that the Pakistan government was trying its best to reduce the impact of inflation and economic crisis on common man.

Pakistan's Finance Ministry said the talks with the IMF continued this week focusing "on fiscal table, financing, etc. There is a broad consensus on the reform actions and measures”.

“The mission is working on putting it all together and will finalise the MEFP,” the statement added.

Earlier, it was reported that IMF cleared gas tariff adjustment which should cover at least the flow of circular debt in the first go.