The resident representative of the International Monetary Fund (IMF) cautioned Pakistan on Monday that it would be a difficult assignment to demonstrate that its balance of payment deficit was covered for the duration of the loan program’s tenure.
According to Esther Perez Ruiz, who responded to Reuters through email on Monday, the external financing is one of the final tasks the lender wants Islamabad to finish before it clears funds that has been blocked since late last year.
After more than a month of discussions to resolve difficulties with the policy framework intended to reduce the fiscal deficit in advance of the annual budget in June, Pakistan wants to sign a staff-level agreement with the IMF.
Apart for the IMF’s request for external finance to clear $1.1 billion in disbursements under the $6.5 billion Extended Fund Facility agreed upon in 2019, the country has accomplished nearly all of the earlier actions. June marks the program’s conclusion.
“All IMF programme reviews require firm and credible assurances that there is adequate financing to ensure that the borrowing member’s balance of payments is fully financed … during the remainder of the programme. Pakistan is no different “said IMF’s Ruiz.
