Pakistan looking towards friendly countries for funding following delay in revival of IMF bailout program

The current loan programme with the IMF will end on June 30, 2023, and Pakistan is now 'considering' a new IMF programme on renewed conditions.

Pakistan is now looking towards friendly countries for funding following a delay in the revival of USD 6.5 billion International Monetary Fund (IMF) bailout program, Pakistan-based ARY News reported. The staff-level agreement between IMF and Pakistan is being delayed from February 9.

The current loan programme with the IMF will end on June 30, 2023, and Pakistan is now 'considering' a new IMF programme on renewed conditions. The fund is delaying the ninth review with Islamabad which has 'forced' Pakistan to get rid of the current loan programme and generate more funds from friendly countries, sources said, according to ARY News.

As per sources, during the tenure of Imran Khan's government, 'tough' demands of the IMF were also agreed upon for the loan programme. The incumbent government imposed taxes of Rs 170 billion through the money budget in February as per the demands agreed upon by Imran's government. Prices of gas and electricity were increased up to 40pc and the rupee further depreciated as the IMF was assured to bring the dollar exchange rate as per open market.

It may be noted that the IMF has asked Pakistan to arrange $6 billion in external financing till June 2023 to avoid default, ARY News reported. Due to a delay in arranging these funds, the 9th programme review worth USD 1.2 billion remains incomplete.

Meanwhile, Pakistan Finance Minister Ishaq Dar on Thursday said Pakistan will no longer make tough decisions on the International Monetary Fund (IMF)'s demand, Pakistan-based ARY News reported. Dar while talking to the journalists said it is completely up to the IMF to sign a staff-level agreement or not.

"We have already implemented pre-conditions of the IMF but not anymore," he said. He added that the government has a plan for USD 3.7 billion in debt repayments in May, in June and it is not facing any difficulty. Dar expressed hopes that China will also roll over USD 2.4 billion in loans for Pakistan.

The Finance Minister earlier said that Pakistan will not default with or without the International Monetary Fund. The government has, however, completed the implementation of all conditions of the IMF. (ANI)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)