ISLAMABAD:
On Thursday, the International Monetary Fund (IMF) deputy managing director requested more information on the sustainability of an official loan proposal, rejecting Pakistan’s request to reduce the additional loan requirement to $5 billion.
Ishaq Dar reported no progress after meeting with IMF Deputy Managing Director Antoinette Monsio Sayeh online.
The ministry’s declaration repeated Dar and IMF Director Jihad Azour’s meeting a day earlier. Day two had similar discussions.
Pakistan’s constitutional and judicial crisis sparked virtual contact. The National Assembly’s rejection of a Money Bill to fund elections and the Supreme Court of Pakistan’s interim order blocking the government from implementing another law to simplify the top judge’s powers have aggravated the political situation.
Long-term financial relations demand political stability and Constitutional supremacy.
During the discussion, the IMF questioned Pakistani authorities’ numbers and the $6 billion financing plan, sources said. Finance minister outlined his months-long loan efforts.
Pakistan requested a $5 billion IMF loan reduction due to a smaller current account deficit in the current fiscal year.
Some IMF members believed Pakistan needed more than $6 billion to strengthen its foreign exchange reserves.
Pakistan committed $6 billion, half of which must realised before the staff level agreement.
The country promised the IMF that Saudi Arabia and the UAE will soon pledge $1 billion.
Pakistan is committed to meeting its IMF obligations, the finance minister said in a Ministry of Finance press statement. It said that the finance minister met all international obligations on time.
Pakistan’s ability
Sources said the IMF unconvinced that Pakistan could secure the remaining $3 billion. Outsourcing the three international airports for $500 million scares.
International competitive bidding structured by the transaction advisor, the International Finance Corporation.
The deputy managing director meeting was quieter than Wednesday’s. Ishaq Dar questioned the IMF Mission Chief’s decision to delay signing a staff level agreement.
Pakistani officials informed the IMF that at least two international commercial banks were in touch, but loan deals cannot be formalised without a staff-level agreement.
Ishaq Dar said the government had no plan to apply the petrol subsidy until the IMF addressed it again.
Dr. Aisha Pasha, Minister of State for Finance, informed the National Assembly Standing Committee on Finance that the government was uncertain about inexpensive petrol. She said the Petroleum Division devised it.
The State Bank of Pakistan’s gross official reserves dropped to $4 billion last week, not enough to last until June.
According to the Finance Ministry, Ishaq Dar and Ms. Antoinette Moniso Sayeh discussed Pakistan’s economic and financial reforms and the IMF’s previous initiatives.
The finance minister told her of the country’s economic prospects and the government’s stabilisation and growth goals.
The Finance Ministry stated Sayeh supported the government’s IMF-agreed reforms in many industries.
The ministry said she supported continuing to work together and expressed optimism in signing the SLA shortly.
