New expressions being used to describe Pakistan-IMF relations

Some scary words were heard about Pakistan politics and economy on Thursday about. Historically, politics has always remained volatile in Pakistan. However, the current status of economy needs utmost as well as immediate and focused attention of all the stakeholders.

A statement came out from IMF yesterday morning saying that the Fund remains engaged with Pakistan on the program, despite the recent happenings in politics which give some confidence to market participants.

However, the same statement says that the country will ‘durably allow, market-based exchange rate and will scrap the fuel subsidy program. PKR depreciated and was very close to crossing the PKR300 mark.  

Another IMF statement on Pakistan yesterday said that the country requires ‘significant’ more financing in order for IMF SLA to go through.

The explicit meaning of ‘durably allow’ and ‘significant’ is very unclear right now as it is difficult to understand what exactly more is required from the IMF side.

Finance Minister also spoke in an event yesterday saying we will not accept IMF demands any more as a lot has already been done and Pakistan will not default, without the IMF.

It appears he meant to say Pakistan will not default without IMF under his remaining tenure which is of less than 3 months now before the term of current government ends.