The current bailout deal between Pakistan and the International Monetary Fund (IMF) is ‘obsolete’ given the amount of global crisis, said Foreign Minister Bilawal Bhutto-Zardari. on Wednesday as the country struggles to meet targets set creditor.
He said it would be justified for Pakistan will sue the IMF in this case in current He speaks.
Pakistan enters top three in year$6 billion IMF deal in 2019 but there struggling implement hard policy obligations. Negotiations are underway in Doha, the capital of Qatar, will allocate funds to stabilize the situation in the country. struggling economy.
“This deal with the IMF is not based on ground realities, and the context is absolutely changed since the conclusion of this deal,” Bilawal told Reuters. on aside of World Economic Forum in Davos, Switzerland.
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“This deal is a pre-pandemic deal. This is a deal before the aftermath of Afghanistan. This is a deal before the Ukrainian crisis. This is a deal before inflation,” he said.
Calling the deal “obsolete”, he said it would be unfair and unrealistic to expect a developing country like Pakistan to resolve geopolitical issues within the framework current agreements.
Deal with the IMF government of former prime minister Imran Khan, who last month has been voted out of power combined confrontation – of of which Bilawal is a part on his appeal of in economy.
“We must deal with IMF and we must keep Pakistan’s word international community…However going forward is very legal for Pakistan will come forward for its part,” Foreign Minister Bilawal said.
Pakistan has committed to budget consolidation under the program and will require the removal of of large unsecured subsidies on fuel and power that cost cash- a deprived country of billions, as global oil prices rise.
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Incomplete tranche of over $900 million conditional on successful IMF review and will also unlock other multilateral and bilateral funding for Pakistan, whose foreign exchange reserves currently lid just two months’ worth of import.
IMF staff made “significant” progress during in-man and remote meetings with Pakistani authorities in Doha from 18 to 25 May, according to the IMF. in statement on Wednesday.
IMF mission chief Nathan Porter said the two sides had “very constructive discussions” and agreed on in need for Pakistan will continue to fight high inflation and increased fiscal and current account deficit.
Porter noted that Pakistan has deviated from the policy agreed in in last review of its Expanded Financing Program and said that IMF officials had stressed the urgency of abolition of fuel and energy subsidies for obtaining back on track with reforms.
Pakistan faced with high inflation rates – CPI inflation was 13.4% in April. Removal of fuel subsidies are likely to have political implications for countries new coalition government with elections are expected within 16 months.
Bilawal said he flew to the United States earlier this month and met Secretary of Anthony Blinken’s fortune in an attempt to engage Washington despite anti-American sentiment being whipped up up his political rival Khan in Pakistan.
Imran says Washington conspired with his political opposition to force him out of power as of his independent overseas policy, including a trip to Moscow to meet Russian President Vladimir Putin. Washington denies the allegations.
The two countries, once close allies, had a chilly relationship in last years.
Bilawal said despite the opportunity of US visit used against its political that it wasn’t in interest of Pakistan will lead foreign relations on the basis of domestic pressure.
He also said he foresaw role for Pakistan that bridges the gap between the US and China. The United States is Pakistan’s main export market and China promises billions of dollars of investments under the Belt and Road Initiative.
Regarding Afghanistan, Bilawal said that like see the Taliban regime live up to obligations made to international community, including those on women rights and education.
“We believe that if we solve humanitarian and economic issues, then easier for us get to new mode in Afghanistan to submit if they have economic and political space do it,” he said.
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