ISLAMABAD: Prime Minister Shehbaz Sharif has asked IMF Managing Director Kristalina Georgieva to assist Pakistan resuscitate the $6.5 billion facility.
According to reports, PM Shehbaz phoned the IMF president on May 27 to intervene in the ninth review. It would unlock $1.1 billion in loans for the cash-strapped nation.
According to Columbia Threadneedle Investments, Pakistan’s external debt service for fiscal year 2024. Which begins in July, is $22 billion, five times its reserves. As a sovereign default looms, the coalition government is increasing financial efforts.
Since November, the coalition government has been negotiating with the Washington-based lender to renew its bailout plan. The $6.5 billion plan expires next month with $2.7 billion still to payout.
The prime has ordered the Ministry of Finance to develop the fiscal year 2023-24 federal budget with the IMF.
The lender seeks to close the interbank-open market rupee-dollar rate disparity.
“IMF staff continues the engagement with the Pakistani authorities to pave the way for a board meeting before the current programme expires in end-June,” said Nathan Porter, IMF mission chief for Pakistan, a day earlier.
He added authorities are working on foreign-exchange market functioning, passing the fiscal year 2023-24 budget.
Pakistan would share its budget with the fund, Finance Minister Ishaq Dar said Sunday. Since all conditions were met, he wanted the IMF to complete its ninth assessment before the budget, which is due in early June.
“They have asked for some more things again, we are ready to give that too, they say that give us budget details, we will give it to them,” Dar told Geo News.
“We will not do it,” he stated of combining the ninth and tenth bailout reviews by the IMF.
