IMF holds unscheduled talks with Pakistan on $7 bln bailout package

The International Monetary Fund (IMF) has taken an unusual step by holding unscheduled talks with Pakistani authorities from November 12 to 15. This move comes just weeks after the IMF board approved a $7 billion bailout package for Pakistan.

While the official purpose of the visit was to discuss economic policy and reform efforts, sources within Pakistan's finance ministry suggest that the IMF's intervention was prompted by significant economic lapses. These include a substantial shortfall in revenue collection, a widening external financing gap, and delays in the privatisation of state-owned enterprises, particularly the national airline.

The IMF mission expressed concern over the ongoing losses in the power and gas sectors, emphasising the need for urgent structural reforms to restore viability. Both sides agreed on the importance of maintaining prudent fiscal and monetary policies while exploring new avenues for revenue generation.

Pakistan's long history of economic instability has led to frequent reliance on IMF bailouts. This latest intervention highlights the ongoing challenges faced by the country and the need for sustained economic reforms.
So far Pakistan has gone through a boom and bust economic cycle many times. Pakistan has knocked on the door of the IMF almost 23 times for the bailout since 1958.