Pak govt reiterates completion of all IMF requirements for bailout
Pakistan has implemented a series of policy measures including increased taxes, higher energy prices, and increasing interest rates to the highest in 25 years to unlock funding from its stalled IMF $6.5 billion loan program.
PremiumPakistan has completed all requirements to receive critical bailout money from the International Monetary Fund (IMF), the country reiterated following a meeting with the lender on Thursday, according to a report published by Reuters.
The crisis-hit country has less than a month's worth of foreign exchange reserves and is awaiting a bailout package of $1.1 billion from the IMF that has been delayed since November over issues related to fiscal policy adjustments.
The funds, which can only be released after signing a staff-level agreement (SLA), are part of a $6.5 billion bailout package the IMF approved in 2019, which analysts say is critical for Pakistan to avert defaulting on external payment obligations.
“The Finance Minister further shared that all prior actions for the 9th Review under the Extended Fund Facility have already been completed and the Government of Pakistan is fully committed to fulfilling its obligations as agreed with the IMF," the finance ministry said in a press release.
The statement said discussions included economic and financial policies, reforms, and initiatives to implement ongoing IMF programs.
It added that Antoinette Moniso Sayeh, deputy managing director at the IMF, supported continuing to work together and was confident of the signing of SLA very soon.
"The Finance Minister also shared that all the international obligations have been addressed in time," it added.
The Washington-based financial body has also expressed confidence in reaching a staff-level agreement (SLA) soon with Pakistan as the country is struggling with its worst economic crisis.
Pakistan has been negotiating with the IMF since early February to secure $1.1 billion in funding as part of a $6.5 billion rescue program agreed in 2019. The IMF has also asked the South Asian nation to seek commitments from Saudi Arabia and the United Arab Emirates before it revives the bailout.
The country has implemented a series of policy measures including increased taxes, higher energy prices, and increasing interest rates to the highest in 25 years to unlock funding from its stalled IMF $6.5 billion loan program.
(With Reuters inputs)
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