‘IMF was skeptical about Pakistan’s commitment due to past trust deficit’

ISLAMABAD: The International Monetary Fund (IMF) executive board, which gave nod to $3 billion stand-by agreement (SBA), was “skeptical” about Pakistan’s commitment to fulfilling the conditions of the agreement due to the ‘past trust deficit’, its Managing Director (MD) said on Friday.

IMF Managing Director Kristalina Georgieva made these remarks during a telephonic conversation with Prime Minister (PM) Shehbaz Sharif following the conclusion of a $3 billion stand-by agreement (SBA).

During the conversation, the IMF MD said that PM Shehbaz built a very convincing case, though the IMF Board was “skeptical about Pakistan’s commitment to fulfilling the conditions of the agreement due to the past trust deficit”.

However, in the light of her continued engagement with the prime minister, she assured the Board that Pakistan will deliver on its commitments as she had personally met the Prime Minister and seen his seriousness to deliver.

She acknowledged the leadership shown by Prime Minister, underlining that there was strong partnership and mutual trust between both parties now. Terming Pakistan as an important member of IMF, she reassured to continue to help Pakistan.

Read More: IMF loan helps Pakistan unlock another $5.6 billion in funding

Meanwhile, PM Shehbaz Sharif conveyed profound gratitude to her for support and assistance in materialising the recently concluded $3 billion SBA. He appreciated the MD for her leadership and professionalism.

The Prime Minister appreciated MD Ms Georgieva for her positive approach and her frank comments during the Prime Minister’s interaction with her in Paris. Eventually, the hard work on both sides paid off and Standby Arrangement (SBA) was signed.

PM Shehbaz reassured that he will not tolerate an iota of violation of this agreement. “This government is here till August after which an interim government will take over and he is confident that they will continue to fulfill the obligations.”

After elections, if the people of Pakistan re-elected his government, he was committed to turning around the economy with the help of IMF and development partners, said the Prime Minister.

Read More: Pakistan-IMF loan agreement comes at challenging juncture: spox

Referring to Pakistan’s best quality mangoes, the Prime Minister said it will be an honour to send a gift of Pakistani mangoes to the Managing Director as a token of respect and deep appreciation.

IMF bailout

Pakistan on Thursday received the first tranche of $1.2 billion from the International Monetary Fund under the SBA programme.

Dar said the remaining $1.8 would be released after two reviews, meaning that there would be two instalments.

Recently, the International Monetary Fund (IMF) approved a $3 billion loan for Pakistan after signing the staff-level agreement last month.