IMF appreciates friendly nations for aiding Pakistan in unlocking loan

The International Monetary Fund (IMF) has welcomed the commitments made by Pakistan’s friendly countries to assist the cash-strapped South Asian country in reviving its months-long delayed $1.1 billion IMF loan tranche.

Nathan Porter, the IMF’s Mission Chief to Pakistan, welcomed the announcement of financial assistance from the South Asian nation’s “key” friendly countries, saying that the Washington-based Fund backs the efforts of the Pakistani authorities.

Pakistan has less than a month’s worth of foreign exchange reserves and is awaiting a bailout package of $1.1 billion from the IMF that has been delayed since November over issues related to fiscal policy adjustments.

To unlock the funding, the government has cut back on subsidies, removed an artificial cap on the exchange rate, added taxes and raised fuel prices.

A Pakistani delegation comprising top officials of the finance ministry and the central bank is currently in Washington to attend the Spring meetings of the IMF.

Finance Minister Ishaq Dar yesterday said that the United Arab Emirates (UAE) has confirmed to the International Monetary Fund (IMF) that it will provide support of $1 billion to Pakistan.

“UAE authorities have confirmed to IMF for their bilateral support of US $1 billion to Pakistan,” Dar said in a tweet.

ISHAQ DAR SAYS UAE CONFIRMS $1BN SUPPORT TO UNLOCK IMF BAILOUT

Dar added that the State Bank of Pakistan (SBP) was now “engaged for needful documentation for taking the said deposit from UAE authorities”.

The IMF’s managing director Kristalina Georgieva said the previous day the fund was also in talks with friendly countries of Pakistan to provide financial assurances so it can complete the programme.

IMF chief Kristalina Georgieva has hoped that Pakistan won’t face Sri Lanka and Ghana-like situations. “Pakistan won’t default. “It is best not to get there, and currently, we are not there yet,” IMF Managing Director Kristalina Georgieva said at a news briefing in Washington.

The IMF and Pakistani officials, she said, were also discussing how to support Pakistan “in terms of providing financial assurances so we can complete the programme”.