Islamabad hopes a bailout decision from the International Monetary Fund (IMF) in a day or two, Pakistan Prime Minister Shehbaz Sharif said on Tuesday, after a telephonic conversation with IMF Managing Director Kristalina Georgieva about the bailout funds, reported Reuters.
Meanwhile, the global lender said it was holding talks with the aim of “quickly reaching an agreement” as the country is taking “decisive steps” to push through a series of economic reforms.
“The IMF team continues discussions with Pakistani authorities with the aim of quickly reaching an agreement on financial support from the IMF,” the global lender’s mission chief in Pakistan, Nathan Porter said in a statement.
Islamabad has been waiting for a deal after taking policy and fiscal tightening decisions required by the IMF. Pakistan is waiting for the disbursal of $1.1 billion loan under the lender’s ninth review of a $6.5-billion Extended Fund Facility agreed in 2019.
“The Pakistan government was searching for a mechanism to receive all pending funds under the IMF programme, which would amount to $2.6 billion,” reported Reuters quoting Pakistan’s finance minister Ishaq Dar.
With the bailout programme set to expire on June 30, Pakistan has also revised its budget for the financial year starting on July 1, and hiked policy rates to 22% in its desperation to clinch the IMF deal.
The IMF funds subject to approval by its board promise respite for Pakistan, which is battling its worst economic meltdown, with an acute balance of payments crisis and falling reserves of foreign exchange
Cash-strapped Pakistan is going through a severe economic crisis amid record inflation and interest rates. The country is currently struggling to avoid a default with financial help from friendly countries like China, Saudi Arabia, and the UAE.
(With inputes from agencies)
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Updated: 28 Jun 2023, 01:56 AM IST
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