ISLAMABAD – Cash-strapped Pakistan moved a step closer to salvage stalled loan from the International Monetary Fund as the United Arab Emirates assured the global lender it will provide a $1 billion loan to help the South Asian nation avoid a debt default.
Emirates confirmed financial support to Pakistan, Finance Minister Ishaq Dar confirmed on Friday, giving a breath of fresh air as all eyes are on the multilateral lender to release tranche.
The pledge from UAE is one of the IMF’s last demands before releasing a staff-level pact to release the tranche that remained in the air for months, and is crucial for Islamabad to resolve an acute balance of payments amid the worsening economic crisis.
In a social media post, the country’s finance chief said the State Bank of Pakistan is now engaged for needful documentation for taking the said deposit from UAE authorities.
IMF program — 9th Review Update:
UAE authorities have confirmed to IMF for their bilateral support of US $ One billion to Pakistan.
State Bank of Pakistan is now engaged for needful documentation for taking the said deposit from UAE authorities.
AlhamdoLilah!
— Ishaq Dar (@MIshaqDar50) April 14, 2023
UAE gave pledges after Riyadh and Pakistan’s all-weather friend Beijing assured funds to Pakistan.
The International Monetary Fund on Wednesday expressed confidence in reaching a staff-level agreement soon with Pakistan as the nation faces one of its worst economic turmoils.
IMF Director Middle East and Central Asia Department Jihad Azour’s made the comments during a meeting with the Pakistani delegation, which is present in the United States to attend the IMF/World Bank Spring meetings.
Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar attended the meeting through Zoom from Islamabad, a statement from the Finance Division said.
Azour hoped that Pakistan would continue towards its progress on the reforms in various sectors and complete the programme in time and “IMF will play its positive role in bringing economic stability in Pakistan”.
Pakistan has completed all prior actions required for securing the IMF loan tranche and the only reason behind the stall in the programme is commitments from friendly countries.
The government makes desperate measures on demands tabled by IMF as the country’s foreign exchange reserves plunged to critical levels and are not be able to cover even a month of imports.
Here’s how many dollars are left with Pakistan according to latest figures
