The elusive deal.

Another week has passed - well, very nearly - without Pakistan being able to have the IMF loan programme revived. A staff-level agreement on the resumption of the $7 billion bailout package - as also confirmed by Finance Minister Ishaq Dar while speaking on the floor of the Senate yesterday - now hinges on if and when the government is able to get written guarantees from friendly countries, including Saudi Arabia, UAE and Qatar, on bridging the external financing gap. This is despite the fact that a series of harsh policy measures - raising the interest rate to an unprecedented 20%, imposing a Rs3.82 per unit debt servicing surcharge on a permanent bases, and allowing the foreign exchange rate to match for outflows to Afghanistan - have already been met.

No wonder IMF's 'uncustomary' attitude is being seen with skepticism and has even raised strategic questions. Taking the opportunity of Dar's presence in the Upper House, Senator Raza Rabbani said 'the question arises if the delay [in finalising the bailout deal] is being made because of some sort of pressure to be exerted on Pakistan's nuclear [programme].' Even though Dar assured of no compromise on the country's nuclear prowess and promised that the moment the staff-level agreement was finalised, it would be put up on the website of the finance ministry, the delay is indeed worrisome - given the soft default that, according to many an expert, has already happened. As a consequence of this delay, the dollar has been inching up by a rupee or...