In phone call with IMF chief, PM Shehbaz expects decision on stalled loan in a day or two

ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday made his fourth contact with International Monetary Fund (IMF) Managing Director (MD) Kristalina Georgieva in six days.

Pakistan’s ninth review by the IMF under the 2019 Extended Fund Facility (EFF) for the release of a $1.2bn funds is still pending with just 3 days remaining the programme’s expiry on June 30.

In a telephonic conversation, Prime Minister Muhammad Shehbaz Sharif has expressed the confidence that understanding on International Monetary Fund programme will shape into a final decision by the lender within a couple of days.

He expressed these views during a telephonic conversation with Managing Director IMF, Kristalina Georgieva.

The premier also expressed the resolve to achieve the goals for improving economic condition of the country in collaboration with the Bank, a handout released by the Prime Minister’s Office (PMO) said.

Speaking on this occasion, the Managing Director IMF acknowledged efforts of the Finance Minister and his team for completing the IMF programme in the wake of her recent meetings with Prime Minister Shehbaz Sharif in Paris.

“We want positive improvement in the economic situation of Pakistan,” the IMF MD told the prime minister while lauding his leadership qualities.

Earlier, it emerged that Pakistan is likely to sign the staff-level agreement with the International Monetary Fund (IMF).

According to sources, Pakistan has met 90 percent conditions for the staff-level agreement with IMF. 

Sources said that Pakistan has also abolished the scheme to bring $0.1 million to the country annually and the interest rate has been increased by one percent. The basic interest rate has been hiked from 21 percent to 22 percent. 

The memorandum of economic and financial policies which includes nine tables has been sent to IMF and the financial experts of the IMF will analyze the memorandum now, sources added.

The source further revealed that talks for the staff-level agreement will take place tonight and Finance Minister Ishaq Dar will finalize the staff-level agreement with the IMF. 

Read more: All conditions for IMF staff-level agreement met: Ishaq Dar

Earlier, Federal Minister for Finance and Revenue Ishaq Dar said that Pakistan has fulfilled all necessary conditions of the International Monetary Fund (IMF) and “no hurdle is now left” in the signing of a staff-level agreement.