Islamabad: It looks like Pakistan may not get the crucial tranche from the International Monetary Fund (IMF) under the Extended Fund Facility (EFF) soon as the country’s loan program is not on the agenda of the lender’s executive board till May 17. This information has been given in the local media report. According to reports, Pakistan and the IMF have been discussing fiscal policy measures in a review since February, with the aim of restarting the $1.1 billion stalled fund in November, agreeing to a $6.5 billion program in 2019. Was. Pakistan has been trying to unlock the crucial ninth review as other multilateral lenders have set revival of the IMF program as a precondition for unlocking funding.
IMF funding is critical for Pakistan to avoid default on its external payments obligations during a balance of payments crisis, in which foreign exchange reserves have been reduced to just four weeks of controlled imports. According to sources, the global lender is not satisfied with the assurance given to it by Pakistan’s friendly countries. Finance Ministry officials, on the condition of anonymity, shared that Pakistan has fulfilled several conditions set by the lender for revival of the credit facility. He said the staff-level agreement on the ninth review was to be signed by February 9.
He further said that the delay in the IMF program is likely to affect the budget plan, which is expected to be presented in the second week of June. Last week, the head of the IMF mission in Pakistan, Nathan Porter, said the lender was working with Pakistan to complete its ninth review of the bailout programme. As part of the conditions, Pakistan has given an assurance that the balance of payments gap is fully funded in this fiscal year ending in June. Pakistan has announced a pledge of $3 billion in financing aid from Saudi Arabia and the United Arab Emirates, but the funds have not yet arrived. Geo News reported that long-time ally China has withdrawn and refinanced its loans.
Read the Latest India News Today on The Eastern Herald.
