IMF says talks with Pakistan Underway
ISLAMABAD: IMF Mission Chief to Pakistan Nathan Porter said that discussions with Pakistani authorities are underway for an urgent revival of support from the IMF”.
“Over the past few days, the Pakistani authorities have taken decisive measures to bring policies more in line with the economic reform program,” Porter said in a statement.
He said that the measures are:
The passage of a budget by the parliament that broadens the tax base;
Opening up space for higher social and development spending;
Steps towards improving the functioning of the foreign exchange market;
Tightening of monetary policy to reduce inflationary and balance of payment pressures that affect particularly the more vulnerable.
,“The IMF team continues discussions with Pakistani authorities with the aim of quickly reaching an agreement on financial support from the IMF,” the official added.
The IMF mission chief issued the statement a few hours after Prime Minister Shehbaz Sharif hoped the resumption of the IMF stalled bailout program within a day or two.
PM Shehbaz expressed hope after his telephone call with IMF Managing Director Kristalina Georgieva. It was his fourth contact with the IMF managing director in six days.
Meanwhile, the PM’s Office also released a statement saying the IMF chief and prime minister Shehbaz Sharif discussed matters related to the stalled bailout program.
On the call, the IMF chief acknowledged Finance Minister Ishaq Dar and his team’s efforts for attempting to revive the loan — after policy matters were discussed in Paris.
Pakistan seeks $2.6 billion from IMF
Earlier, Finance Minister Senator Muhammad Ishaq Dar said that the government was anticipating $2.6 billion disbursement from the IMF.
He said that the nation would soon hear “good news” regarding the revival of the stalled bailout package.
“We are trying our best to complete the 9th [IMF] review and the nation will receive good news soon,” the financial czar added.
The South Asian nation is going through its worst economic crisis amid record inflation and interest rates, but it has seen prospects for its IMF loan take a positive turn before it expires at the end of the week.
With the bailout programme set to expire on June 30, the federal government has also revised its FY24 budget and hiked policy rates to 22% in its desperation to clinch the deal, the key to unlocking other external financings for the cash-strapped nation.
