By IANS,
Islamabad : Pakistan has failed to get any indications from the International Monetary Fund (IMF) on the release of the final tranche of an $11.3 billion loan package, it was reported here Tuesday.
A Pakistani delegation to the IMF-World Bank spring meetings in the US is returning without any understanding on the release of the final instalment, the Dawn reported.
The country has received over $7 billion in five instalments, but the sixth instalment was suspended since May 2010 due to Pakistan’s inability to meet performance benchmarks.
“There are no indications that the delegation was able to convince the IMF to release the next tranche,” the Dawn quoted a diplomatic source as saying.
“And until the sixth tranche is released, it is highly unlikely that the IMF will hold any negotiations on a future arrangement.”
There were indications that Islamabad may seek another loan of about $3.2 billion to meet its financial obligations and to repay earlier debts.
“But the country’s economic performance is so poor that it is difficult to imagine how they could have convinced the IMF to release the next tranche,” the source said.
The country has about two months’ time left to implement at least some of the reforms the IMF recommended to be eligible for the final tranche and to seek a fresh package, the media report said.
The IMF’s concerns are over increasing inflation, a fiscal deficit, exemptions in the reformed general sales tax and energy subsidies.
It has warned that if prompt remedial measures were not taken, the country’s deficit may go up to 6 percent by the end of the current fiscal year.
Experts have pointed out that India too had a high deficit but its growth rate was also between 9-10 percent compared to Pakistan’s two percent.