SBP lifts all restrictions on imports to fulfil IMF condition

KARACHI: The State Bank of Pakistan (SBP) has lifted all restrictions on imports to fulfil one more condition of the International Monetary Fund (IMF), ARY News reported on Friday.

The central bank issued a circular to end all restrictions on imports in order to fulfil another IMF condition.

The federal government granted permission to banks for providing remittances to release more than 6,000 containers. The SBP stated in the circular that remittances will be provided for all imports after the enforcement of the latest order.

The authorised dealers have been given instructions to provide remittances following the recommendations of the stakeholders, said the central bank.

Yesterday, it was learnt that Pakistan and the International Monetary Fund (IMF) are facing challenges in reviving a loan program, leading to conflicts between the IMF and the Ministry of Finance.

READ: In last-ditch effort, PM Shehbaz Sharif meets IMF MD in Paris

Sources revealed that the plan to bridge the external financing gap included the funds received from the donor conference held in Geneva.

The conference aimed to gather support and contributions for Pakistan’s financial needs. As part of the plan, the IMF was given a target to secure $500 million by June through the Geneva Donor Conference.

However, efforts to obtain funds for the Ministry of Planning and Treasury have been met with obstacles. The Ministry has struggled to make progress on contracts and agreements under the Donor Conference, which has further hindered the financing process.

Sources from the Ministry of Finance report that, only $150 million has been received through the Geneva Donor Conference, falling short of the expected amount. This has led to dissatisfaction on the part of the International Monetary Fund (IMF), which has expressed concerns over the lack of financial support obtained through the conference.

Despite these challenges, the funds received under the Donor Conference will be allocated towards crucial recovery and rehabilitation projects in areas affected by floods. The aim is to address the needs of these communities and support their restoration efforts.