IMF in talks with Pakistan for 9th review, says spokesperson
- By Web Desk -
- May 11, 2023
The International Monetary Fund (IMF) has confirmed that talks are underway with Pakistan for the 9th review of the $7bn Extended Fund Facility (EFF).
IMF spokesperson told Bloomberg that the loan program with Pakistan to continue and so far they have not received any signal from Pakistan about suspending the program.
“IMF is seeking assurance from Pakistan for implementation of economic policy.” The IMF spokesperson further said that Pakistan signed a three-year loan agreement with the fund in 2019, which will end in June 2023.
Pakistan has assured not to introduce a fuel subsidy scheme in the current ongoing fiscal year of 2022-23, the IMF official told Bloomberg.
The International Monetary Fund official denied commenting on the arrest of former prime minister and Pakistan Tehreek-e-Insaf chief Imran Khan.
Read more: Pakistan could default without IMF funds, Moody’s warns
It is pertinent to mention here that the IMF issued the schedule of board meetings in which Pakistan is not included in any agenda until May 17.
On Tuesday, Moody’s Investor Service warned that Pakistan could default without an International Monetary Fund bailout as its financing options beyond June are uncertain.
According to the Bloomberg report, Grace Lim, a sovereign analyst with the ratings company in Singapore, said that Pakistan’s financing options beyond June are highly uncertain and South Asian country can “default” given its very weak reserves.