Asad Umer meets IMF Chief, formally requests provision of loans

Federal Minister for Finance Asad Umer called on International Monetary Fund (IMF) chief Christine Lagarde on Thursday to formally request the global body for providing financial assistance to cushion the sinking economy of Pakistan.

Governor State Bank Tariq Bajwa and other officials of Economy Division were present during the meeting.

IMF Chief also confirmed the news of meeting with the Minister and other Pakistani officials and said in a statement, “During the meeting, they requested financial assistance from the IMF to help address Pakistan’s economic challenges.”

Lagarde also informed that an IMF team will visit Islamabad in the coming weeks to initiate discussions for a possible IMF-supported economic program.

On October 8, the federal government announced to approach the International Monetary Fund for an “economic recovery program.”

Acccording to a statement released by Ministry of Finance, the government, after taking into account the current situation and consultation with the leading economists, decided to approach the IMF for stabilisation and an “economic recovery program”.

“The government inherited 6.6% of fiscal deficit, more than a trillion rupees of unaccounted for losses in the energy sector and an unprecedented and debilitating current account deficit running at $2 billion a month. To correct the underlying imbalances, fiscal and monetary actions needed to be undertaken without delay,” reads the statement.

“It is essential to remember that there is a history of Pakistan repeatedly going to the IMF with every new government being forced to go with IMF program due to legacy of those who held power in the previous government,” the ministry noted.