ISLAMABAD: Finance Minister Ishaq Dar’s assurance that Pakistan has not defaulted and will not default in the future has been endorsed by International Monetary Fund’s (IMF) Managing Director Kristalina Georgieva.
Speaking at a news conference during the spring meeting of Breton Wood Institutions at the Fund’s Washington headquarters, Georgieva confirmed that Pakistan had not yet reached the default level.
Georgieva further stated that the Fund is currently working with international partners to secure the financing gap requirements of Pakistan, and emphasized the need for a sustainable policy framework to avert default risks. She assured that the IMF has been working closely with Pakistani authorities to ensure that they have the necessary policy framework in place to prevent the country from reaching unsustainable levels of debt.
Pakistan is currently facing a severe financial crisis, with less than a month’s worth of foreign exchange reserves. The country is awaiting a $1.1 billion bailout package from the IMF, which has been delayed since November due to issues related to fiscal policy adjustments.
Georgieva expressed her hope that, with the cooperation of all stakeholders and the implementation of agreed policies, the current program can be completed successfully. However, to unlock the next tranche of IMF funding, Islamabad must give assurance that its balance of payments deficit is fully financed for the fiscal year ending in June.
