Talks between the government and the IMF have failed to conclude. The Fund now says that “discussions will be continuing” via video conference in the coming days, without touching on the reasons for the lack of closure.

Instead, in what can only be called a diplomatic bow, the Fund prefers to use rose-scented language to tell us that it is “encouraged by the overall progress” of the government’s reform effort which is “broadly on track”, that the talks “have been useful” and the mission “made excellent progress”.

We are left guessing at the reasons why the talks failed to conclude. The government has not helped to clear the confusion, either. On Sunday, we were told by the finance ministry spokesman that the talks will end smoothly and on schedule, and waivers were being sought for non-compliance on a couple of minor items only.

He also confirmed that both sides would hold their customary joint news conference on Monday at the conclusion of the talks. Then on Monday, we were told that the talks would continue for another three or four days, possibly with a conclusion on Friday because the finance minister had to rush back to Islamabad for a meeting of the parliamentary committee on electoral reforms.

A few leaks suggest the sticking points might be larger than what is being alluded to. For one, the government is still struggling to bring about the power tariff adjustments required to keep the power subsidy bill from growing.

The matter had been complicated by a Nepra determination calling for lowering of the tariff, followed by an order of the Lahore High Court demanding implementation. Additional leaks suggest that the government failed to fully comply with the terms of the commitment to grant autonomy to the State Bank.

It is disingenuous of both parties to try to conceal the facts. Mr Dar should have given greater priority to the meetings. The political situation in Islamabad is insufficient reason for the government to allow economic decision-making to be paralysed in this way.

It is hard to understand why the parliamentary committee could not wait while the issues with the Fund were cleared. The Fund should make special mention of this delay in its fourth review report, and give the full reasons why the talks dragged on like this.

Published in Dawn, August 20th, 2014