Subsidies, security costs ‘on chopping block’ to placate IMF

The government may have to withdraw energy subsidies to big export industries, besides cutting non-salary, non-essential civil and security costs as part of harsh reforms required to obtain the International Monetary Fund’s consent for an economic bailout that ensures soft landing for the poor and vulnerable. Senior government officials said IMF mission chief for Pakistan Nathan Porter had already arrived in Islamabad to start a technical discussion with authorities on Tuesday (today), which would continue till Friday (Feb 3). The second phase of policy negotiations would continue till Feb 9 to finalise a memorandum of economic and financial policies (MEFP). The government’s maximum effort with the IMF will be to secure an arrangement that entails burden of massive fiscal adjustment on the principle of ability to pay amid an already hard-pressed majority population, an official said, adding this would mean all segments of society, including the middle class, civil administration, armed forces and judiciary, would have to sacrifice the kind of lifestyle that is no more sustainable.