May 15, 2023
2 mins read

Pakistan asked to arrange $8b for successful IMF bailout review

IMF’s demand comes despite receiving confirmation from Saudi Arabia and the United Arab Emirates (UAE) further eroding chances for the revival of the USD 6.5 billion bailout package….reports Asian Lite News

The International Monetary Fund (IMF) on Saturday asked Pakistan to arrange USD 8 billion in fresh loans to back the external debt repayments during the next seven months for the successful completion of the long-stalled ninth review bailout package, reported The Express Tribune.

IMF’s demand comes despite receiving confirmation from Saudi Arabia and the United Arab Emirates (UAE) further eroding chances for the revival of the USD 6.5 billion bailout package. A staff-level accord to release a USD 1.1 billion tranche out of a USD 6.5 billion IMF package has been delayed since November, nearly 100 days since the last staff-level mission to Pakistan.

The IMF’s demand to seek its approval on the upcoming budget for the fiscal year 2023-24 has also not been met yet, further minimising the prospects of early completion of the pending 9th review of the Extended Fund Facility (EFF), according to the government sources, reported The Express Tribune.

Sources say that the IMF has raised the demand for additional financing from an earlier unmet condition of USD 6 billion to USD 8 billion to ensure debt repayments coming up for May-December 2023.

The lender has worked out the USD 8 billion needs by considering all projected inflows and outflows for this period, reported The Express Tribune.

Meanwhile, on Thursday Finance Minister Ishaq Dar said that Pakistan will not make tough decisions on the demand of the International Monetary Fund (IMF) anymore.

While informally talking to the journalists, Ishaq Dar said that it is completely up to the International Monetary Fund (IMF) to sign a staff-level agreement or not.

He clarified that the government will not make tough decisions on IMF’s demand anymore. “We have already implemented pre-conditions of the IMF but not anymore.”

Sources have said that the IMF’s focus is now more on ensuring that Pakistan does not default by arranging funds to the extent of external debt repayments. It is no longer emphasising increasing the extremely low foreign exchange reserves, reported The Express Tribune.

In a scheduled press conference on Thursday, IMF spokesperson Julie Kozack said Pakistan needed “significant additional financing” to successfully complete the ninth review. She said the economy was facing stagflation, had very large financing needs and had also been affected by a series of shocks, including severe flooding. (ANI)

ALSO READ: Afghanistan reports first polio death of 2023

Previous Story

Beijing seeks resolution between Pakistan and Taliban over TTP

Next Story

Imran arrest: Over 500 people detained for violence in Islamabad

Latest from -Top News

‘Kill and Dump’ Haunts Balochistan Again

The latest killings have reignited accusations of extrajudicial executions and the use of counterterrorism laws to cover up custodial deaths in Balochistan….reports Asian Lite News Concerns have deepened across Balochistan following the

‘ASEAN Expands, But Keeps Its Soul’

Malaysian Foreign Minister Mohamad Hasan urged ASEAN to uphold its unity and strategic resolve amid intensifying geopolitical tensions and mounting external pressures…reports Asian Lite News Consensus and inclusivity will remain the cornerstones

Bangladesh bends to beat Trump’s blow

Dhaka seeks compromise as Trump’s 35% tariff looms large over key exports; Washington urges worker protections, factory relocation to US…reports Asian Lite News Bangladesh has opened the second round of critical trade

China seethes as US lands F-35s in PH

As US F-35 jets land in the Philippines for the first time, Manila cements its frontline role in Washington’s power play against rising China….reports Asian Lite News The Philippines is rapidly cementing
Go toTop

Don't Miss

Imran announces long march in last week of May

Khan had repeatedly blamed the US for backing the no-confidence

Pakistan’s fury doesn’t even spare Indian wheat

The trucks carrying the aid had entered Pakistan’s territory a