The IMF has abandoned Pakistan, giving economic policymakers a tough time.

The IMF has gone into the mode of “wait and see” policy amid increasing political uncertainty on the political cum economic horizon of the country. The foreign currency reserves held by the State Bank of Pakistan (SBP) are depleting at a high speed. During the week ending on November 25, 2022, the SBP reserves decreased by $327 million and stood at $7.49 billion due to external debt repayments. The IMF has rejected the revised macroeconomic and fiscal framework shared by the Pakistani authorities. The development spending has been proposed to be slashed by 50 per cent as the Ministry of Finance conveyed to the Planning Ministry to cut down the PSDP allocation from Rs727 billion to Rs350 billion maximum. Experts said without waiting for a rundown on depleting foreign exchange reserves, now the time has come when the IMF should come forward to rescue Pakistan’s economy.