ISLAMABAD – Cash-strapped Pakistan continues desperate attempts to secure much needed funds but to no end, as IMF tells Islamabad to satisfy its officials on three more counts, starting with a federal budget which is slated to be presented on Friday.
In a recent development, International Monitory Fund representative Esther Perez pointed out that robust and reliable financing is crucial to fill the gap of $6 billion before the board review for the Ninth Review of Staff Level Agreement (SLA).
The global lender official maintained that the Pakistani financial team should come up with a pro-IMF budget in order to get the stalled funds.
IMF representative called Friday budget most important for crisis-hit country in the current situation as it emphasizes the need for the exchange rate market to work autonomously.
Earlier, it was reported that the federal government has decided to end the current IMF programme without completing it as current programme ends on June 30. As per the Plan B, the government has decided to negotiate a new programme with the International Monetary Fund immediately after the budget as the coalition government is planning to conclude the $6.5 billion Extended Fund Facility without completing all the pending reviews.
The government has been negotiating with the US-based financial institution to revive its bailout programme since November, with the financing gap among the biggest roadblocks. There’s about $2.5 billion left to disburse from the $6.5 billion programme that’s scheduled to expire on June 30.
The sources said that while negotiations on the ninth review were almost complete, a staff-level agreement is yet to be reached. Even after this review completes, the 10th and 11th reviews will remain pending.
Moreover, they said that the new bailout programme will likely be for more than three years. “Pakistan will desperately need an IMF programme in September as the country needs to pay around $9-11 billion dollars in repayments of external debt by December 2023.
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