With Pakistan embroiled in an acute burden of debt, to the extent that 70 percent of its revenue is diverted to pay off debt, there is no way but the IMF (International Monetary Fund) way to stay afloat and avoid default.

The difference is that just a three years ago our finance managers had a plenty of elbow room to discuss could still discuss IMF or no IMF. Moreover, they still had good space to move around in while negotiating with the Fund. Now we are on our knees as things are getting worse and not better, to say the least.

Finance Minister Muhammad Aurangzeb is currently in Washington to attend the spring meetings organised by the IMF and the World Bank (WB). According to him, Pakistan has initiated discussions with the Fund over a new multi-billion dollar loan agreement to support its economic reform programme. He has also stated that the country will at least be requesting a three-year programme.

He further said that Pakistan expected an IMF mission to visit in May and would like to reach a staff-level agreement on the next loan by the end of June or early July, without specifying how much the country was seeking.

Pakistan, in pursuit of another long-term package — its 24th thus far — from the IMF, has formulated a comprehensive economic recovery plan. This plan........

© Business Recorder