As IMF funding delayed, Pakistan expects $3 bln from friendly country

Pakistan expects to secure $3 billion in external financing from a friendly country in two weeks, its finance minister said on Friday as the South Asian country awaits IMF funding. An International Monetary Fund (IMF) review for the release of its next tranche of funding has been pending since September, leaving Pakistan in dire need of external financing.

Pakistan's finance minister Ishaq Dar said on Friday in an interview with Geo News TV that all targets for the IMF's ninth review have been completed, adding that withholding a tranche despite that would not make sense. The IMF's resident representative in Pakistan did not immediately respond to a request for a comment.

Dar said Pakistan's foreign reserves, which have dropped to $7.5 billion, will be shored up with a $3 billion financing from a friendly country in the next two weeks. That is hardly enough for a month of imports for Pakistan, which has been facing a widening current account deficit and a balance of payments crisis.

"All the requirements for the ninth (IMF) review are completed," Dar said, adding that the international lender was "behaving abnormal" by not completing the review. Pakistan will make alternate arrangements in case of any delay from the IMF, he said.

"If the money doesn't come, we will manage, no problem," he added.

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