Aamna Aamna 
Pakistan is at risk of the most important economic test as it seems to be falling short of meeting most of the targets set by the IMF for its current loan package. Inside sources indicate that this country is in big trouble as far as the second half of the loan is concerned, with the failure to meet some financial conditions. The failure of the government to meet the standards might lead it to strengthen measures and complicate further financial relations.
The government of Pakistan is facing several challenges to address the conditions given by the IMF. Currently, the privatization of Distribution Companies (DISCOs) is still ongoing with a January completion date appearing unlikely. Targets concerning the revenues in December seem to be ambitious, while the agricultural income tax and the assets declaration program might be slowed down. These vices may have far-reaching consequences on the country’s macroeconomic stability and a future bailout from international lenders.
It is not just administrative problems that are at stake here. Some of the constraints include the government through the IMF program has directly affected fuel pricing whereby petroleum prices have recorded steep hikes. High-speed diesel has since mid-October been sold at Rs 12.14 per liter higher than before while petrol has gone up by Rs 5.07 per liter. These increases in the prices of underlying goods and services bear testimony to the fact that the authorities have to tread a fine line between fulfilling the conditions of the IMF and addressing domestic forces that drive the economy.
If these targets are not made, then Pakistan’s existing loan program may be aggravated significantly. The information flows from the fact that these performances not being met may require increased coercive tactics for successive installments of loans. The government is brought to a rather vulnerable position whereby it is caught between outside financial needs and internal economic pressures to have to accept tougher terms the next time around.
