The International Monetary Fund (IMF) and Pakistan will commence policy-level discussions today (Monday), as financially-strained Islamabad aims to secure another agreement with the Washington-based lender while satisfying all the stringent requirements associated with it.

The negotiations will primarily focus on deciding the magnitude of the upcoming IMF programme, establishing the corresponding terms and conditions, and defining the objectives and aims for the next budget.

Simultaneously, both parties will establish the macroeconomic objectives for the upcoming fiscal year’s budget. The IMF is determined to enforce policies such as monetary tightening (raising interest rates), increasing energy tariffs, adopting a market-based exchange rate, and implementing privatisation.

The expectation is that both parties will conclude the negotiations during the current week and finalise a staff-level agreement, which will then be subject to the ultimate approval of the IMF Executive Board.

A significant number of experts argue that the International Monetary Fund (IMF) has proposed a misguided policy of increasing interest rates, which has severely damaged the economy of the country. Consequently, it is imperative for the State Bank of Pakistan to promptly initiate a cycle of reducing interest rates.

They believe that the existing monetary policy will result in an overwhelming accumulation of debt and taxes, which will hinder the revival of economic activity and investment. This outcome has already been evident to all.

Despite the prevailing cost of living crisis in Pakistan, the IMF is insisting on raising the minimum energy bill, citing its necessity in managing the escalating circular debt.

However, due to the stringent conditions imposed by the IMF and Pakistan’s inability to address the issues in the energy sector, as well as the nature of agreements made with independent power producers (IPPs), the country is unable to benefit from the decline in global prices of solar panels and related equipment.

Further information: Should I choose solar power or not? The inefficiency of the energy sector provides a compelling reason to reconsider the solar energy policy.

Pakistan and the MF initiated discussions on both the Extended Fund Facility (EFF) and climate funding. Pakistan is seeking a larger and more extensive bailout package to stabilise and revitalise its economy.

According to sources, it has been stated that the two parties have reached an agreement on the significant objectives outlined for the forthcoming budget, which encompass the punctual settlement of foreign debt obligations.

The state-run news agency IRNA has reported that Iran’s Supreme Leader, Ayatollah Ali Khamenei, has announced a period of five days for the entire nation to grieve the untimely death of President Ebrahim Raisi in a helicopter accident.

Khamenei paid a respectful homage by sharing a photograph of himself with Raisi on X, previously known as Twitter, and included a remark alluding to Imam Reza, the highly esteemed eighth imam of Shia Islam.

Mohammad Mokhber, the First Vice President, has been appointed to supervise the executive branch of the government. He will serve in this role temporarily for a period of 50 days, during which a new presidential election must take place. Mokhber has committed to perpetuating Raisi’s trajectory and guaranteeing the seamless execution of governmental responsibilities.

“As per Article 131 of the constitution, Mokhber has been appointed to lead the executive branch,” stated Khamenei. He further mentioned that Mokhber will collaborate with the heads of the legislative and judicial branches to make arrangements for the upcoming presidential elections, with a deadline of 50 days.”

According to IRNA, Ali Bagheri Kani has been designated as the interim foreign minister following this unfortunate event. The remains of Raisi are currently being brought to Tabriz, however, specific information regarding his funeral plans has not yet been provided.

An unusual conference, encompassing all three levels of the Iranian government, was convened on Monday in response to the tragedy. Mokhber served as the representative of the executive branch, while delegates from the legislative and judiciary branches were also present.

“During the meeting, Mokhber assured that we will adhere to President Raisi’s directives and carry out our assigned responsibilities without any disruptions.” As to the constitution of the Islamic Republic, the first vice president is authorised to temporarily take the position of president with the agreement of the Supreme Leader. Subsequently, a new president is to be elected within a period of 50 days.

Global leaders have offered condolences and conveyed their profound grief and sympathy with the people of Iran in response to this tragic occurrence. While the country grieves, plans are being made to commemorate Raisi’s accomplishments and facilitate a seamless transfer of power.

Sardar Tanveer Ilyas, the ex-prime minister of Azad Jammu and Kashmir, has been apprehended by the Margalla Police in Islamabad.

Ilyas was apprehended by the authorities following the registration of a case against him at the Margalla Police Station, as stated by the police spokeswoman.

The police officials have accused Ilyas of committing six grave offences, which include assaulting the premises of a private enterprise.

The spokeswoman verified the arrest, stating that Ilyas was apprehended following a comprehensive investigation and subsequent legal actions.

This event follows the filing of a case against Ilyas, accusing him of being involved in the assault on a private company’s office.

The individual has been apprehended by law enforcement and will be subjected to investigation and subsequent legal procedures.