Business

IMF Rejected Cash-Strapped Pakistan Govt’s Claims of Meeting Loan Conditions

The IMF has rejected the cash-strapped Pakistani government’s assertion that it has satisfied all requirements to reach an agreement with the international financial organisation to release funds under an already agreed-upon loan facility. In 2019, the International Monetary Fund agreed to give Pakistan USD 6 billion in exchange for meeting a number of requirements.

Due to the donor’s desire that Pakistan finish all legalities, the plan was repeatedly derailed, and the final payment is still pending. Ishaq Dar, the minister of finance, and Shehbaz Sharif, the prime minister, have asserted time and time again that there was no justification for delaying the staff-level agreement because Pakistan had fulfilled all the prerequisites.

The Express Tribune newspaper claimed to have received a statement from the fund on Friday refuting the government’s assertion that it had taken all prior steps required to finish the 9th review. Nathan Porter, the IMF’s mission chief in Pakistan, was quoted in the newspaper as saying that the IMF is still working with the Pakistani government to complete the 9th review once the required money is in place and the agreement is finalised.

Porter’s statement refuted what the Pakistani government has been asserting since the face-to-face negotiations concluded inconclusively on February 9th, the newspaper stated. Nathan omitted details about the amount of financing Pakistan will need to arrange in order to complete the 9th review for the USD 1.2 billion loan tranche, which has been delayed by seven months.

Pakistan needs USD 6 billion to close the funding gap by June of this year, according to the finance minister. Pakistan had received guarantees from Saudi Arabia and the United Arab Emirates that they would lend the country USD 3 billion, but there are no clear guarantees for the remaining loans.

Gross official foreign exchange reserves of Pakistan are still at USD 4.5 billion. Up to June of this year, the nation owes the rest of the globe close to USD 4 billion in principal and interest on its debt. According to the sources, Pakistan must also get cash to repay the loans during the first half of the upcoming fiscal year because the government does not have a reliable finance plan for the months of July through December.

Malika Sahni

Recent Posts

Post-Diwali Smog Chokes Delhi-NCR As Air Quality Dips To ‘Very Poor’ Levels

Two days after Diwali, thick smog has engulfed Delhi and its neighbouring areas, sending air…

3 hours ago

Acharya Pramod Krishnam Raises Concerns Over Tata Group’s ₹3,000 Crore Loss; Calls For High-Level Probe

Acharya Krishnam expressed deep concern over alleged Tata Group corruption, calling the ₹3,000 crore loss…

4 hours ago

PM Modi Extends Greetings As Sacred Guru Charan Yatra Begins Its Journey To Takht Sri Patna Sahib

PM Modi on Wednesday extended warm wishes on the Guru Charan Yatra, highlighting the enduring…

4 hours ago

Amit Shah Celebrates Gujarati New Year And 61st Birthday With Warm Greetings In Ahmedabad

Union Home Minister Amit Shah celebrated the Gujarati New Year and his 61st birthday at…

5 hours ago

‘PM Modi Embodies National Service’: Acharya Krishnam’s Praise Sparks Political Buzz

Acharya Pramod Krishnam lauded Prime Minister Narendra Modi, saying his every atom is dedicated to the country.

6 hours ago

Lack Of Morning Sunlight May Be Throwing Off Your Body Clock

Health experts warn that insufficient morning sunlight can disrupt your circadian rhythm, affecting sleep, mood,…

7 hours ago