Deadlock on external financing remains between Pakistan, IMF

ISLAMABAD: Pakistan and the International Monetary Fund (IMF) are facing challenges in reviving a loan program, leading to conflicts between the IMF and the Ministry of Finance, ARY News reported, citing sources.

Sources revealed that the plan to bridge the external financing gap included the funds received from the donor conference held in Geneva.

The conference aimed to gather support and contributions for Pakistan’s financial needs. As part of the plan, the IMF was given a target to secure $500 million by June through the Geneva Donor Conference.

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However, efforts to obtain funds for the Ministry of Planning and Treasury have been met with obstacles. The Ministry has struggled to make progress on contracts and agreements under the Donor Conference, which has further hindered the financing process.

Sources from the Ministry of Finance report that, only $150 million has been received through the Geneva Donor Conference, falling short of the expected amount. This has led to dissatisfaction on the part of the International Monetary Fund (IMF), which has expressed concerns over the lack of financial support obtained through the conference.

Despite these challenges, the funds received under the Donor Conference will be allocated towards crucial recovery and rehabilitation projects in areas affected by floods. The aim is to address the needs of these communities and support their restoration efforts.