ISLAMABAD: Army Chief General Qamar Javed Bajwa today urged the United States administration to use their influence for early dispersal of $1.2 billion IMF loan as Pakistan faces the risk of debt default due to dwindling foreign reserves.
According to Nikkei Asia, the army chief contacted the US Deputy Secretary of State Wendy Sherman on a phone call earlier in the week, sources from both US and Pakistan revealed requesting anonymity because they were not authorised to speak publicly.
Gen. Bajwa requested the White House and Treasury Department to urge the IMF to expedite the bailout process and immediately release $1.17 billion that Pakistan expects to receive under a resumed loan programme.
Pakistan and the IMF have already signed a staff-level agreement in June for the release of the loan to support the country’s fragile economy. Delay in the IMF loan disbursement has triggered depreciation of Pakistani currency, which has fallen to Rs240.
The IMF executive board is scheduled to meet on August 25 to consider approval for the release of funds to Pakistan and by that time the local currency will further lose its value as the foreign exchange reserves of the central bank are constantly declining, falling to $8.57 billion by July 22, 2022.
