Policy-level talks between Pakistan and the International Monetary Fund review mission continued on Tuesday, with a focus on reforms in government institutions, privatization, revenue, expenditure, dollar inflows, institutional reforms, non-subsidy in the energy sector during the debt programme, measures to reduce the budget deficit, power sector and petroleum sector.
According to media reports, the United Arab Emirates once again came to rescue the cash-strapped nation amid a difficult time as it assured the International Monetary Fund mission on Tuesday on the country’s external financing gap.
The development came during a meeting between the IMF mission chief and the UAE ambassador in Pakistan, on the sideline of the ongoing policy-level talks between the international lender and Islamabad in connection with the first review of the $3 billion standby arrangement.
The IMF delegation met the UAE envoy to confirm the availability of external financing to Pakistan.
Matters related to Pakistan’s external financing gap worth $6.5 billion and other issues were discussed in the meeting, revealed well-placed sources.
During the meeting, the UAE envoy assured the IMF officials that his country would play a role in Pakistan’s economic stability.
The Pakistani team, led by caretaker Finance Minister Shamshad Akhtar, also briefed the IMF on reforms in government institutions, the progress of the privatization programme, and the National Clean Air Policy, National Climate Finance Strategy, exchange rates, Sukuk bonds for new debt, T-bills, and issuance of investment bonds.
The talks between Pakistan and the IMF are likely to continue till November 15. If successful, Pakistan will get the next installment of about $71 million from the IMF’s loan programme. Final approval in the case of a staff-level agreement will be given by the IMF’s Executive Board.
The UAE has not disclosed the specific amount of external financing and investment that it has assured Pakistan, but the support is likely to be significant. The UAE has a close relationship with Pakistan and has been a major investor in the country in recent years.
The UAE’s support is significant for Pakistan as it comes at a time when the country is facing economic challenges. The IMF’s loan programme is crucial for Pakistan to meet its external financing needs and to stabilize its economy. The UAE’s support will also help to boost investor confidence in Pakistan and attract more foreign investment.
