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.
