The International Monetary Fund (IMF) has rejected Pakistan’s request to reduce the requirement of securing $6 billion in additional loans, leaving the government with no choice but to salvage the agreement, according to The Express Tribune.
The International Monetary Fund (IMF) has rejected Pakistan’s request to reduce the requirement of securing $6 billion in additional loans, leaving the government with no choice but to salvage the agreement, according to The Express Tribune.
Minister of State for Finance, Dr Aisha Pasha, stated during a meeting of the National Assembly Standing Committee on Finance that Pakistan’s only option is to return to the IMF. The committee also discussed the possibility of invoking the contempt of Parliament law against Finance Minister Ishaq Dar for his absence during the meeting.
Minister of State for Finance, Dr Aisha Pasha, stated during a meeting of the National Assembly Standing Committee on Finance that Pakistan’s only option is to return to the IMF. The committee also discussed the possibility of invoking the contempt of Parliament law against Finance Minister Ishaq Dar for his absence during the meeting.
Pakistan’s economy is grappling with a severe inflationary crisis, reaching its highest rate since 1957. The country now finds itself with the highest inflation rate in Asia, surpassing even Sri Lanka. As of May 2023, the inflation rate stands at a staggering 38%, posing significant challenges for the government and the people of Pakistan.
Pakistan’s economy is grappling with a severe inflationary crisis, reaching its highest rate since 1957. The country now finds itself with the highest inflation rate in Asia, surpassing even Sri Lanka. As of May 2023, the inflation rate stands at a staggering 38%, posing significant challenges for the government and the people of Pakistan.
Dr Pasha revealed that Pakistan had asked the IMF to consider lowering the external funding requirement based on updated data on the current account deficit, but the request was declined. She further explained that $3 billion was to be arranged after reaching a staff-level agreement, but the IMF insisted on demonstrating the $6 billion. Dr Pasha stressed that there was no alternative to going back to the IMF and there was no backup plan if negotiations failed.
Dr Pasha revealed that Pakistan had asked the IMF to consider lowering the external funding requirement based on updated data on the current account deficit, but the request was declined. She further explained that $3 billion was to be arranged after reaching a staff-level agreement, but the IMF insisted on demonstrating the $6 billion. Dr Pasha stressed that there was no alternative to going back to the IMF and there was no backup plan if negotiations failed.
Dr Aisha Pasha said, “There is no option other than going back to the IMF, and I categorically say there is no Plan B.”
Dr Aisha Pasha said, “There is no option other than going back to the IMF, and I categorically say there is no Plan B.”
Member of the National Assembly (MNA) Dr Ramesh Kumar attributed the prolonged delay in restarting the IMF programme to Pakistan’s foreign policy course. Dr Pasha noted that arrangements had been made by Saudi Arabia, the United Arab Emirates, the World Bank and Geneva Commitments for Pakistan to receive $4.5 billion, with the remaining $1.5 billion to be set up after reaching a staff-level agreement.
Member of the National Assembly (MNA) Dr Ramesh Kumar attributed the prolonged delay in restarting the IMF programme to Pakistan’s foreign policy course. Dr Pasha noted that arrangements had been made by Saudi Arabia, the United Arab Emirates, the World Bank and Geneva Commitments for Pakistan to receive $4.5 billion, with the remaining $1.5 billion to be set up after reaching a staff-level agreement.
Finance Minister Dar, in a separate statement, expressed optimism about reaching a staff-level deal in June and assured that Pakistan’s external financing was in order. Dr Pasha mentioned that Pakistan had shared its fiscal year 2020 budget with the IMF and was awaiting feedback, stating that the budget generally aligns with IMF recommendations. However, concerns were raised by committee members regarding the government’s decision to share budget figures with the IMF but not with lawmakers, according to ANI.
Finance Minister Dar, in a separate statement, expressed optimism about reaching a staff-level deal in June and assured that Pakistan’s external financing was in order. Dr Pasha mentioned that Pakistan had shared its fiscal year 2020 budget with the IMF and was awaiting feedback, stating that the budget generally aligns with IMF recommendations. However, concerns were raised by committee members regarding the government’s decision to share budget figures with the IMF but not with lawmakers, according to ANI.
The IMF has disbursed $3.9 billion of the overall $6.5 billion rescue package, with the remaining amount dependent on the completion of three outstanding reviews. The government’s efforts to salvage the agreement and secure the necessary funding will continue as negotiations with the IMF persist.
The IMF has disbursed $3.9 billion of the overall $6.5 billion rescue package, with the remaining amount dependent on the completion of three outstanding reviews. The government’s efforts to salvage the agreement and secure the necessary funding will continue as negotiations with the IMF persist.
