Why Pakistan’s discussions with the IMF cease?

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Why Pakistan’s discussions with the IMF cease?

However, there is still room for further discussion, and the round of talks could drag on until next week as the Pakistani team is expected to stay longer in Washington DC.

As a result, according to official sources, it has stalled rather than failed.

This is the second round of talks, which began on October 4 and ended on October 15. In June, the first round of the sixth review was conducted, but the results were inconclusive.

Despite the rise in prices of electricity, gas and petroleum products by Pakistan, the stalemate is apparently an attempt to comply with IMF standards.

According to PML-N president Shahbaz Sharif, the talks “failed” because the federal government had already raised prices before concluding talks with the IMF.

Other reasons for the non-final talks have also been mentioned.

When the IMF’s assessment with Pakistan is completed, it will release a ارب 1 billion loan installment.

What did they talk about?
The Pakistani delegation to the IMF was led by Finance Minister Shaukat. The Pakistani delegation briefed the IMF representatives on higher tax revenues, reduction in circular debt and increase in gas prices. According to the report, IMF officials remained dissatisfied even after the increase in prices of electricity and petroleum products and the October 15 deadline passed without an agreement between the two sides.

Train made a last-ditch effort to save talks with IMF Managing Director Kristalina Georgieva and US Assistant Secretary of State for South and Central Asian Affairs Donald Low, but their talks were “fruitful.”

The parties were unable to reach an agreement on the Memorandum of Economic and Monetary Policy (MEFP). It is a document that presents a broad economic framework for the IMF-administered nation.

Why did the talks “fail”?
Authorities have offered no explanation for the unsatisfactory talks. However, it can be both technical and political.

According to those familiar with the talks, the MEFP should have reached an agreement at the beginning of the talks. This article or section needs sources or references that appear in credible, third-party publications.

IMF and Pakistani teams disagreed on key forecasts and price increases. The International Monetary Fund (IMF) has called for a further increase in energy costs, allegedly due to rising petrol prices.

According to Muzammil Aslam, spokesman for the finance minister, the finance secretary will extend his stay in Washington to finalize talks with the IMF.

He said the talks would begin on Monday and be completed in the next few days, but no timetable had been set.

Shahbaz Sharif of the PML-N criticized the government’s “poor approach” to the failure.

He said the administration had raised prices prematurely and that IMF talks had failed as a result.

He said that the administration misled the people and created confusion for the IMF.

After the talks ended, the PML-N leader asked the government to reverse the price hike.

Others have linked the deadlock talks to Pakistan’s support for the Taliban in Afghanistan, saying it is not good for the nation ahead of next week’s FATF conference.

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