Despite the assurances from friendly countries about external funds to Pakistan, the International Monetary Fund (IMF) still showing a lack of confidence and asked Islamabad to ‘do more’ to unlock loan programme.
Pakistan and the IMF have been discussing fiscal policy measures in the review since February, aiming to resume stalled funding of $1.1 billion due in November from a $6.5-billion programme agreed in 2019.
According to the sources, Pakistan has been asked to present a repayment plan for a $3.7 billion loan to the IMF in June as well as need to demonstrate stronger support from friendly nations in order to meet the lender’s condition.
Sources said that the international lender is not satisfied with the assurances given to it by Pakistan’s friendly countries. Finance Ministry sources shared that Pakistan has fulfilled multiple conditions set by the lender for the revival of the loan facility.
They further said that the delay in the IMF programme is likely to affect the budget planning which is expected to be tabled in the second week of June.
Last week, IMF mission chief in Pakistan Nathan Porter said the lender was working with Pakistan to conclude a ninth review of the bailout programme.
“The IMF continues to work with the Pakistani authorities to bring the ninth review to conclusion once the necessary financing is in place and the agreement is finalised,” mission chief Nathan Porter said in a statement to international media.
“The IMF supports the authorities in the implementation of policies in the period ahead.”
Remember that Last month, the staff-level agreement between Pakistan and the International Monetary Fund is again ‘delayed’ as the international lender has put a new demand.
Earlier IMF chief Kristalina Georgieva while addressing World Bank meeting in Washington said that Pakistan has not reached default and it is hoped that Pakistan will not reach default, Pakistan will not face a situation like Sri Lanka and Ghana.
Kristelina Georgieva, said that it is hoped that Pakistan will successfully complete its current program and extend it to Sri Lanka and Ghana. Such a situation will not have to be faced.