ISLAMABAD: Finance Minister Ishaq Dar revealed that the UAE had reaffirmed to the IMF its $1 billion bilateral support. It was the last requirement to conclude staff-level agreements with the IMF.
The finance minister tweeted that the State Bank of Pakistan “engaged for needful documentation. Said documentation required for taking the deposit from UAE authorities”.
IMF meetings
Pakistan strongly urged the IMF to sign the staff-level agreement in a meeting earlier. It could not acquire a date despite Islamabad’s rising fears about the economic crisis.
In a virtual conference with IMF Middle East and Central Asia Director Jihad Azour, Finance Minister Ishaq Dar made the proposal. The IMF again emphasised the problem of petrol subsidy and likely fiscal leakages from the subsidy plan.
Pakistan needed $6 billion in external financing from now until June to avoid default. Both sides have stated their viewpoints.
Saudi Arabia confirmed its $2 billion loan to Pakistan and Dar promised the IMF that the UAE will shortly approve its $1 billion loan.
According to the finance ministry’s press statement, the two sides also addressed the IMF programme’s development, including the IMF mission’s visit to Pakistan and the implementation of earlier initiatives.
The current account deficit was $3.9 billion through eight months of this fiscal year. Dar informed the IMF that Pakistan would secure a $2 billion loan from the World Bank, Asian Infrastructure Investment Bank, and commercial banks if the Fund approved the staff-level agreement.
However, the IMF demanded commercial loans before the staff-level agreement, which Pakistan cannot meet without IMF support.
