News & Event 

Tension in the air: Even critics side with government as IMF talks remain deadlocked

May 11, 2013

As stock and foreign currency markets respond nervously to the deadlock in talks between Pakistan and the International Monetary Fund (IMF), the government’s most vocal opponents have come forward to defend it, accusing the lender of becoming ‘political’. Pakistan and the IMF could not conclude on time the fourth review of the $6.7 billion bailout programme due to Washington-based lender’s insistence on increasing power tariffs before its executive board meeting. The talks ended without any agreement with a resolve from both sides to continue the parleys in coming days to reach a conclusion. The IMF is also seeking drastic changes in the State Bank of Pakistan Act aimed at giving autonomy to the institution. But this condition is not as sensitive as the rise in power tariffs in the face of ongoing political crisis, stemming from the sit-ins held by the Pakistan Tehreek-e-Insaf and Pakistan Awami Tehreek, according to analysts.

Back Main