Pakistan-IMF deal to be sealed after UAE funding assurance: minister

ISLAMABAD: As International Monetary Fund is looking to assess friendly countries commitment to financing Pakistan before the multilateral lender disburses fresh funds to the South Asian nation, Minister of State for Finance and Revenues Dr Aisha Ghaus Pasha said that the IMF deal will unlock after funding assurance from UAE as demanded by the global lender, ARY News reported on Thursday.

Speaking to the media in Islamabad, the state minister announced that IMF has confirmed that it has received confirmation from Saudi Arabia on $2 billion in additional deposits to Pakistan.

“The International Monetary Fund (IMF) has conveyed to Pakistan that it has received confirmation from Saudi Arabia on $2 billion in additional deposits,” she said, adding talks with UAE was underway for $1billion financing.

She went on to say that Islamabad was holding talks with Saudi Arabia, UAE, China and Qatar for additional funds, adding that deal with the global lender is likely to be signed after funding assurance from UAE.

Islamabad has been negotiating with the IMF since the January for the release of $1.1 billion from a $6.5 billion bailout package agreed upon in 2019. To unlock the funding, the government has jacked up interest rate by 3pc, removed an artificial cap on the exchange rate, added taxes and raised fuel prices.

It may be noted that the IMF had demanded of the Pakistani government to get a written guarantee from the friendly countries for the deposit.

Sources earlier said that Saudi Arabia and UAE had sought some time to assure the IMF regarding the deposit.