As IMF funding delayed, Pakistan expects $3bn from friendly country

ISLAMABAD: Pakistan expects to secure $3 billion in external financing from a friendly country in two weeks, its finance minister said on Friday as the South Asian country awaits IMF funding.

An International Monetary Fund (IMF) review for the release of its next tranche of funding has been pending since September, leaving Pakistan in dire need of external financing.

Pakistan's Finance Minister Ishaq Dar said on Friday in an interview with Geo News TV that all targets for the IMF's ninth review have been completed, adding that withholding a tranche despite that would not make sense.

The IMF's resident representative in Pakistan did not immediately respond to a request for comment.

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Dar said Pakistan's foreign reserves, which have dropped to $7.5 billion, will be shored up with a $3 billion financing from a friendly country in the next two weeks.

That is hardly enough for a month of imports for Pakistan, which has been facing a widening current account deficit and a balance of payments crisis.

‘Won’t take IMF’s dictation’

The finance minister said he will not take dictation from the IMF on managing Pakistan’s finances, saying he would prioritize Pakistan’s interests.

To a question about the delay in the ninth review, Dar said, "All the requirements for the ninth (IMF) review are completed," adding that the international lender was "behaving abnormally" by not completing the review.

“I don’t care if they come. I don’t have to plead before them. I have to look at Pakistan’s matters.”

He noted that Pakistan will make alternate arrangements in case of any delay from the IMF.

"If the money doesn't come, we will manage, no problem," he added.

Dar insisted that his aggressive approach will not derail the IMF programme, stressing that the government would complete the current programme as well.