PM Shehbaz thanks Sri Lankan president for support in clinching IMF deal

ISLAMABAD: Prime Minister (PM) Shehbaz Sharif on Monday thanked Sri Lankan President Ranil Wickremesinghe for supporting Pakistan to reach an agreement with the International Monetary Fund (IMF), ARY News reported.

According to details, the prime minister made the remarks in a telephone conversation with the president of Sri Lanka – which had also secured a preliminary agreement with the IMF in September last year.

“You have played role of a true friend and a well-wisher of Pakistan, and I thank you on behalf of the people of my country,” the prime minister told the Lankan president.

During the telephonic conversation, PM Shehbaz and President Ranil Wickremesinghe discussed matters relating to the current economic situation of both the countries.

He paid tributes to Sri Lanka for its role in promoting regional peace and development. He also hoped that both Pakistan and Sri Lanka would come out of the economic crisis very soon.

The Sri Lankan president congratulated Prime Minister Shehbaz Sharif for reaching the staff level agreement with the IMF. He also thanked Prime Minister Shehbaz Sharif for expressing good wishes for his country.

The Sri Lankan president appreciated the struggle and efforts of Prime Minister Shehbaz Sharif during the difficult economic situation in Pakistan.

The Sri Lankan president had stressed the IMF to help Pakistan saving from default as Sri Lanka had to face very tough situation after falling into default.

The IMF executive board approved the bailout loan program of $3 billion this week after months of delay, boosting Pakistan’s financial stability ahead of elections this year. Fitch Ratings upgraded Pakistan this week on the improving funding environment.

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

Later, State Bank of Pakistan (SBP) received $1.2 billion from the International Monetary Fund (IMF) as the first tranche of a $3 billion bailout to stabilise the economy.

Finance Minister Ishaq Dar – in a televised statement – said the remaining $1.8 would be released after two reviews, meaning that there would be two instalments.

Pakistan’s foreign reserves had jumped by $4.2 billion during the last four days, he said – in a reference to $2bn deposit made by Saudi Arabia and another $1bn received from the United Arab Emirates (UAE).

The foreign exchange reserves held by the SBP rose to $8.4 billion. Dar said: “Our foreign exchange reserves will close at around $13-$14 billion on July 14”.