PTI terms IMF deal positive development, questions PDM’s economic plan
Main opposition party says masses will bear the brunt of deal in form of further rise in inflation
July 03, 2023
- “Govt is celebrating [IMF deal] as it is receiving $3 billion in charity”.
- PTI says electricity, gas tariffs will be hiked under the bailout deal.
- PDM lacks an economic plan to steer the country out of crisis: PTI.
The Pakistan Tehreek-e-Insaf (PTI) has termed the signing of a $3 billion stand-by agreement (SBA) with the International Monetary Fund (IMF) a positive development but at the same time it raised questions over the coalition government’s economic plan to revive the ailing economy.
Pakistan and the IMF reached a staff-level agreement (SLA) on short-term SBA last week following a delay of nine months, which is subjected to approval by the Washington-based lender’s executive board in mid-July.
“I am pleased to announce that the IMF team has reached a staff-level agreement with the Pakistani authorities on a nine-month Stand-by Arrangement (SBA) in the amount of SDR2,250 million [about $3 billion or 111 per cent of Pakistan’s IMF quota],” Nathan Porter, the IMF’s Mission Chief to Pakistan, said in a statement.
Reacting to the development, the PTI hit out at the Pakistan Muslim League-Nawaz (PML-N)-led ruling alliance saying, “The government is celebrating [IMF deal] as it is receiving 3 billion dollars in charity.”
The main opposition party spokesperson further said that the people will now carry the burden of this deal in the form of a further rise in inflation.
“The same people [incumbent rulers] in the PTI government called the IMF agreement anti-state,” the statement added.
Moody's rating agency has expressed uncertainty over IMF's $3 billion funding, the PTI said adding that the government will have to hike electricity and gas tariffs under the bailout package.
The PTI also took a jibe at the government over the increase in diesel price saying the rate was increased by Rs7.5 per litre despite buying “cheap oil” from Russia.
The communique said electricity shortfall will also increase with the increase in its prices.
“Undoubtedly, the IMF programme is a positive development, but what lies ahead,” the PTI questioned.
It went on to say that the PDM government lacked an economic plan to steer the country out of crisis and added that the incumbent rulers’ priority is only to borrow loans from friendly countries and global lenders.
