Pakistan teeters on bankruptcy as IMF bailout talks end without deal
- The IMF had been at loggerheads with Islamabad over unlocking the latest tranche of a draft US$6.5 billion package agreed in 2019
- Pakistan’s economy is in dire straits amid soaring inflation and dwindling forex reserves standing at just US$2.9 billion as of last week
After months of deadlock, the International Monetary Fund arrived last week for last-ditch negotiations with a government fearing the political consequences of enforcing bailout conditions in an election year.
Pakistan’s economy is in dire straits, stricken by a balance of payments crisis as it attempts to service high levels of external debt amid political chaos and deteriorating security.
Inflation has rocketed, the rupee has plummeted and the country can no longer afford imports, causing a severe decline in industry.
“Considerable progress was made during the mission on policy measures to address domestic and external imbalances,” the IMF said in a statement.
“Virtual discussions will continue in the coming days to finalise the implementation details of these policies.”