FATF clearance must for IMF loan

ISLAMABAD: Pakistan is on tight rope, as unless FATF (Financial Action Task Force) clears Pakistan, the International Monetary Fund (IMF) will not extend any bailout package to wriggle the country out of economic quagmire.

Therefore, Pakistan is left with no option but to take all the actions required by FATF. After FATF is satisfied with actions, the IMF will be given green signal by Trump administration to sign the loan programme with Pakistan.

“This is very alarming situation for Pakistan, which direly needs the Fund’s assistance to stabilise itself and bring it out of the appalling economic situation,” a senior official in economic ministry told The News.

However, Dr Khaqan Hasan Najeeb, spokesman for Finance Ministry denied saying that IMF has not linked its loan programme with first clearance by FAFT. He said talks with IMF are underway and there is substantial progress on vital issues in the talks and parleys with Fund people would also continue in Washington when Finance Minister Asad Umar will be there with his team.

According to the official sources, however, the indecisiveness by the PTI government on how to advance on economic front factually played havoc with country’s economy a lot. The indecisiveness triggered the uncertainty across the country shattering confidence of the market. So much so, Finance Minister Asad Umar came up with the statement that Pakistan has now two options either to move IMF or go bankrupt. This statement, the official said, was not only unwanted and damaging to the image of the country, but also caused stock exchange market to go down by 500 points.

Because of the faulty and untimely decisions of the government, the country’s economic wheel has come to standstill owing to which, about 40,00,000 (4 million people) have gone down below the poverty line and more tough days are ahead when Pakistan will join IMF.

Dr Ashfaque Hasan Khan, eminent economist, said that IMF will not treat PTI government as it had treated Nawaz government. The IMF had given 15 waivers to Nawaz government, but this time Fund under the influence of Trump administration will not extend any relief to PTI government on this account. However, the official said that under prior actions, the government has devalued the Pak rupee by 36 percent so far as value of dollar currently stands at Rs143 in the open market, but if one wants to purchase, dollar is not available in the market. The people have went for dollarisation preempting that the currency will further appreciate up to Rs150 and next year it may go up to Rs180. The power and gas tariff has already been increased substantially but more economic miseries will further hit the masses after PTI government joins the IMF.