ISLAMABAD: The International Monetary Fund (IMF) remains in touch with Pakistan’s authorities in order to pave the way for a board meeting before a financing program expires at the end of June, the IMF mission chief for Pakistan said.
Ordinarily, a board meeting on a review of the program would require a prior staff-level agreement, which in Pakistan’s case would unlock $1.1 billion in financing for the cash-strapped South Asian nation as part of a $6.5 billion IMF package.
The staff-level agreement has been delayed since November last, with more than 100 days since the last staff-level mission to Pakistan, the most prolonged delay since at least 2008.
“This engagement will focus on restoring foreign exchange proper market functioning, the passage of a FY24 budget consistent with program goals, and adequate financing,” IMF mission chief Nathan Porter said.
Earlier, Finance Minister Ishaq Dar on Monday became angry on questions hurled by journalists that was it his failure for not having an (Staff Level Agreement) agreement with the IMF.
Visibly angry Dar refused to answer questions on the new budget and the IMF (deal).
Pakistan will share its upcoming budget details with the International Monetary Fund (IMF) in order to unlock stalled funds, Finance Minister Ishaq Dar said.
Hopes for a resumption of an IMF deal are diminishing, analysts say, with a bailout programme agreed in 2019 due to expire on June 30 at the end of the 2022-23 fiscal year.
Dar said he would like the IMF to clear its 9th review before the budget, which is due to be presented in early June, as all the conditions for that had already been met.
The IMF funding is crucial for the $350 billion South Asian country, which faces an acute balance of payments crisis. This has raised concerns of a sovereign default, something which the minister dismissed.
The central bank’s foreign reserves have fallen as low as to cover barely a month of controlled imports. Pakistan’s economy has slowed, with an estimated 0.29% GDP growth for 2022-2023.
“They have asked for some more things again, we are ready to give that too, they say that give us budget details, we will give it to them,” Dar said in an interview with local Geo TV.
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