On Monday, Finance Minister Ishaq Dar met with senior IMF and World Bank officials in Geneva to discuss the economic challenges that climate change will pose to the region.
During a meeting with IMF chief Nathan Porter that coincided with a climate change conference, Ishaq Dar reaffirmed his commitment to completing a programme with the IMF.
They discussed the challenges that local economies are facing as a result of climate change.
“The finance minister reiterated the commitment to complete the Fund program,” it added.
The minister also met with Martin Razor, vice president of the World Bank, and expressed his gratitude for the organization’s financial and technical assistance provided to Pakistan during the recent floods.
Separately, Ishaq Dar met with Muhammad Sulaiman Al Jasser, President of the Islamic Development Bank (IsDB), and Isobel Coleman, Deputy Administrator of the United States Agency for International Development (USAID), to discuss flood rehabilitation and reconstruction in Pakistan.
According to former finance minister Miftah Ismail, after the current bailout programme expires, Pakistan will need to secure a new one from the International Monetary Fund (IMF).
According to the Miftah, if the international lender agrees to continue its current programme, Pakistan can avoid default.
The PML-N leader claimed that without IMF assistance, the risk of default will increase. According to him, the increased demand for dollars is due to people purchasing them as a hedge against default fears.
Ismail claimed that Pakistan received more aid than expected during the Geneva conference, which will ease Islamabad’s negotiations with the Fund.
He also stated that new loans from Saudi Arabia and China could be requested.
According to the former finance minister, the financing gap has grown but will eventually close.