ISLAMABAD – Pakistan has sought the assistance of the United States in securing “lenient treatment” from the International Monetary Fund (IMF) after failing to provide assurances on external financing demands. The IMF has requested that Pakistan obtain confirmation on external financing needs of $6 to $7 billion from Saudi Arabia, United Arab Emirates (UAE), Qatar, and other multilateral creditors to fill the financing gap until the end of June 2023.
According to Media report , Minister for Finance Ishaq Dar has contacted the US diplomatic corps in Islamabad to request their help in ending the stalemate with the IMF. Despite Pakistani authorities’ claims that they have implemented all prior actions advised by the IMF, the IMF still demands 200% assurances from friendly countries and multilateral creditors before signing the staff-level agreement (SLA).
The IMF has made it clear that without full surety of external financing, the “sustainability” of the loan facility cannot be guaranteed. The IMF has also requested that power sector subsidies be abolished on a permanent basis, rather than temporarily until the end of the next financial year.
It is yet to be seen how the IMF and Pakistani sides will proceed, as each party is holding the other responsible for the delay in signing the SLA. A senior government official has stated that the IMF held a final meeting with the State Bank of Pakistan officials on Monday, and both parties hope that the agreement will be signed in the coming days.
The News Agency Headline: Pakistan Seeks US Help to Secure “Lenient Treatment” from IMF on External Financing Demands