Despite receiving confirmation from Saudi Arabia and the United Arab Emirates, the International Monetary Fund has now asked Pakistan to arrange $8 billion in fresh loans to back the external debt repayments during the next seven months for a successful completion of the long-stalled ninth review bailout package.
A staff-level accord to release a $1.1 billion tranche out of a $6.5b IMF package has been delayed since November, with nearly 100 days gone since the last staff-level mission to Pakistan.
Sources say that the IMF has asked Pakistan to arrange $8.4 billion in fresh loans aimed at ensuring debt repayments for the May-December 2023 period.
The IMF has asked Pakistan to arrange $6 billion in external financing till June 2023 to avoid default. Due to a delay in arranging these funds, the 9th programme review worth $1.2 billion remains incomplete.
On Thursday, Finance Minister Ishaq Dar said that Pakistan will not make tough decisions on the demand of the International Monetary Fund anymore.
While informally talking to the journalists, Ishaq Dar said that it is completely up to the International Monetary Fund to sign a staff-level agreement or not.
He clarified that the government will not make tough decisions on IMF’s demand anymore. “We have already implemented pre-conditions of the IMF but not anymore.”
