IMF says talks underway with Pakistan to revive bailout package
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IMF says talks underway with Pakistan to revive bailout package
LAHORE (Dunya News) – International Monetary Fund's (IMF) Mission Chief to Pakistan Nathan Porter has said that talks are underway to reach an agreement with Pakistan on financial support from the global lender.
In a statement issued on Tuesday, Porter said Pakistani authorities took decisive steps to bring policies more in line with the economic reform programme.
Porter’s statement comes as Pakistan continues to negotiate with the IMF for the completion of a ninth review of the $6.5 billion Extended Fund Facility agreed in 2019 and the release of a $1.2bn tranche.
The review has been stalled since October and the government is now hopeful of its completion soon with Prime Minister Shehbaz Sharif engaging with the IMF chief multiple times in recent days.
Porter said Pakistan adopted various measures including the passage of a budget by the parliament that broadened the tax base while opening up space for higher social and development spending, as well as steps towards improving the functioning of the foreign exchange market and tightening monetary policy to reduce inflationary and balance-of-payment pressures.
“The IMF team continues discussions with Pakistani authorities with the aim of quickly reaching an agreement on financial support from the IMF,” he added.
Earlier, Prime Minister Shehbaz Sharif again contacted International Monetary Fund (IMF) Managing Director Kristalina Georgieva and expressed the hope that the world’s top lender would reach a decision on the stalled bailout package in a day or two.
The latest conversation came through a phone call after he held three meetings with the IMF chief in Paris last week and the National Assembly passed the revised budget for the year 2023-24 two days ago.
“In connection with the meetings held in Paris, the IMF director general acknowledged efforts by the finance minister and his team for completion of the programme,” read a statement issued by the Prime Minister’s Office.
As the prime minister expressed the hope for a swift release of the stuck loan, he also reiterated, the statement said, his determination to achieve the goals of improving the economic situation through joint efforts.
