The revival of the IMF’s loan program for Pakistan took a new turn when international lenders imposed new conditions before signing a staff-level agreement.
HERE COMES IMF NEW TANTRUMS FOR A PEANUT LOAN
With all the pre-requisites in place to unlock the next $1 billion, Pakistan reportedly faces another hurdle.
The IMF is seeking loan guarantee documents from friendly countries such as the Kingdom of Saudi Arabia, Qatar and the United Arab Emirates (UAE) until June 30.
A Treasury official said a written guarantee must be provided by the managing director of each IMF-friendly country.
The Ministry of Finance, along with the Prime Minister’s Office, has been actively seeking written assurances from friendly countries.
Officials hope to receive written assurances soon, the sources said.
Pakistan has completed the implementation of all the preconditions set by the International Monetary Fund. This includes the explosion in the 2023 budget and higher electricity and gas rates.
The finance ministry said it has also agreed to the IMF’s final condition that Pakistan not borrow directly from commercial banks.
Pakistani officials and the International Monetary Fund have concluded negotiations on a revised economic and monetary policy note.
Sources said Pakistan hopes to seek staff-level approval from the IMF’s executive board.
Pakistan Prime Minister Shehbaz Sharif said that Pakistan is meeting the toughest conditions of the International Monetary Fund and thereby putting pressure on the people.
He also warned that he would put more pressure on “hardworking Pakistanis” in the coming days.
In an interview with a private television channel, the Prime Minister of Pakistan said about the difficult times ahead: “I fully approve of this.”
The Prime Minister said that he and his coalition partners were aware of the country’s economic situation as it was on the brink of failure when he assumed power.
