Pakistan-IMF talks end in deadlock

ISLAMABAD: Pakistan and the International Monetary Fund (IMF) have remained unable to develop consensus owning to persistent differences on the pace of adjustments and conditionalities.

The finance team has made it clear to the IMF team that the previously fixed targets would not be achievable by the government anymore under the prevailing circumstances. It was third phase of talks between Pakistan and the IMF. The finance team took the stance that if the government increases the tariff of gas and power it will have to increase its tax net, which is not possible in the current circumstances.

However, the government has assured the IMF team that additional expenditure will be cut down. The sources also added that the finance teams also resisted the IMF demand of freezing salaries of the government employees. The finance team will now meet the IMF in December this year to discuss matters pretending to release of the next tranche.