IMF seeks more Pak assurances before releasing bailout package
Islamabad [Pakistan], April 15 (ANI): The International Monetary Fund (IMF) has “welcomed” Pakistan’s confirmation of having secured crucial bilateral support from key partners with a rider, saying it looked forward to receiving further “financing assurances as soon as possible”, which would help conclude the much-delayed ninth review of a USD 7 billion loan programme, Dawn reported.
The statement from the Fund came a day after Finance Minister Ishaq Dar said the UAE had confirmed its commitment to the IMF for its bilateral financial support of USD 1 billion to Pakistan, bringing the country one step closer to securing the deal with the lender that is critical for avoiding default.
The finance minister had also announced that the State Bank of Pakistan was to receive on the same day the third and last disbursement from the Industrial and Commercial Bank of China (ICBC) worth USD 300 million out of its USD 1.3bn loan, Dawn reported.
IMF Mission Chief to Pakistan Nathan Porter said, “We welcome the recent announcement of important financial support to Pakistan from key bilateral partners.”
“During the meetings between the Pakistani delegation and IMF staff and management, there was agreement on the need to maintain strong policies and secure sufficient financing to support the authorities’ implementation efforts,” he added, Dawn reported.
The IMF official said the IMF was supporting these efforts and looking forward to “obtaining the necessary assurances as soon as possible to pave the way for the successful completion” of the 9th review of an Extended Fund Facility (EFF), signalling Pakistan still expects more funds from friendly countries.
Recently, Jihad Azour, who heads IMF’s Middle East and Central Asia Department, said the IMF was working “hand-in-hand” with Pakistan and its bilateral donors to ensure that Islamabad gets the financial support it needs to stabilise the economy, Dawn reported.
The recent developments are a key step forward in signing a much-delayed staff-level agreement (SLA) with the Fund and unlocking multilateral disbursements. Since early February, Pakistan has been negotiating with the IMF to revive the USD 7bn bailout programme to secure a USD 1.1bn tranche.
Securing payments from friendly countries has been Pakistan’s goal since last month after Prime Minister Shehbaz Sharif said the lender wanted external financing commitments fulfilled from friendly countries before it released bailout funds.
Subsequently, on April 6, the state minister of finance said that the Fund had received a commitment from Saudi Arabia regarding funding for Pakistan.
Several friendly countries such as Saudi Arabia, China and the UAE, had made commitments to help Pakistan fund its balance of payments.
Meanwhile, Prime Minister Shehbaz Sharif on Saturday rued that his government “inherited an IMF agreement that was in tatters” and expressed his determination to overcome these challenges by striking a deal with the lender as soon as possible. (ANI)
