Political situation delaying IMF deal, Report

The political situation in Pakistan has become a factor in delaying a deal with International Monetary Fund (IMF) that may stabilise the national economy. As per Dawn report, global lenders, particularly the IMF, are seeking assurances from Pakistan that the future political setup in the country will respect any deal they sign with Islamabad. Pakistan and the IMF have been negotiating the resumption of an installed $7bn IMF programme for months now but are yet to reach an agreement.  Two major issues remain unresolved: financial and political assurances. The IMF wants Pakistan to show that it can raise enough financial resources to narrow its balance of payments gap, it said.

Meanwhile, Prime Minister Shehbaz Sharif on Wednesday said that the coalition government is making all-out efforts to bring the economy out of the prevailing quagmire and put the country ahead on the path of development and prosperity.Talking to a delegation of Council of Pakistan Newspapers Editors (CPNE) in Islamabad, he said the fears of default have ended now due to prudent policies of the government implemented during its eleven months in power. He said the government has to accept the tough conditions of the IMF due to the previous government's agreement.Shehbaz added the present government is cognizant of the sufferings of common people due to the prevailing economic situation. 

Foreign Minister Bilawal Bhutto Zardari has said that Pakistan is facing a "perfect storm" of crises as the country battles with worsening political, economic and security issues. Not only do we have heightened partisanship and political polarisation, to the extent that political parties or political stakeholders aren't even in a position to sit in a room and discuss issues amongst themselves, he said. As the country faces a security threat and crisis following the Afghan government's fall, he said, it is also suffering from the increasing frequency of terrorist attacks and reeling from the aftermath of the biggest climate catastrophe in history., Bilawal added.