Pakistan

IMF deal taking time due to delay in assurance from friendly nation: Ishaq Dar

  • Says he cancelled his US trip on the request of PM Shehbaz, will attend IMF-World Bank spring meetings virtually
Published April 8, 2023

A day after cancelling his US visit that gave rise to immense speculation, Finance Minister Ishaq Dar looked to pacify concerns, and said that the staff-level agreement between Pakistan and the International Monetary Fund (IMF) was taking time solely because of delay in confirmation of funding from a friendly country. The financing confirmation would bridge Pakistan's external account gap and meet the last condition of the IMF.

In a lengthy press conference, he stated Pakistan has completed all prior actions laid down by the IMF and even introduced a mini-budget. Even after the confirmation by friendly nations, the process of staff level agreement will take 2 weeks to complete, he added.

“In the past two weeks, one friendly country gave the confirmation of its commitment to help Pakistan with $2 billion. We are now only awaiting the confirmation of $1 billion commitment from another friendly country."

Speaking about the fuel subsidy for low-income consumers recently announced by the government, the finance minister said discussions have been held with the IMF and “Pakistan has given satisfactory responses to all the queries of the global lender so far”.

“Fuel subsidy will not be funded from budget rather it will be cross funded from high-income consumers,” he said.

Addressing rumours over his cancelled trip to Washington, Dar underlined that he will attend important meetings of the two multilateral lenders virtually from Islamabad.

“I will skip a few meetings that will be attended by Pakistan’s team in Washington,” he stressed.

“A negative twist is being given to cancellation of my trip which is fake news. In late 90s when economic sanctions were imposed on Pakistan and IMF paused its bailout, the country still participated in its annual meetings.

"The IMF cannot stop me from attending the spring meetings.

“We are a member country of the IMF and World Bank and not a beggar,” Dar said.

Talking about the reasons behind cancellation of his trip, he stated that Prime Minister Shehbaz Sharif asked him not to leave Pakistan amid a developing constitutional crisis in the midst of an economic crisis.

Despite worse liquidity crunch, Pakistan has not missed or delayed any local or international sovereign payment, he said.

“The country repaid $11 billion in the past few months in sovereign payments,” he said and warned people not to paint a negative picture of Pakistan.

Punjab Elections

The finance minister said on multiple occasions in the history of Pakistan, elections were not held within 90 days of dissolution of assembly. He stated that during earthquakes, floods and assassination of Benazir Bhutto, elections were held after 90 days.

“Even this time around, Punjab elections will take place after 90 days as per the date decided by Supreme Court of Pakistan,” he said.

He noted that the government was given the responsibility to arrange fund for elections by April 10 while but the Ministry of Defence has refused to provide security for elections.

Comments

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Parvez Apr 08, 2023 04:37pm
Blame everyone else.... except yourself.....how pathetic.
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Abdulrehman Haroon Apr 08, 2023 04:53pm
A sorry effort to save face, but I wonder what's even the point? Nobody is going to believe a word that comes out from this man's mouth. An out and out liar.
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Ulgen Apr 08, 2023 05:19pm
Even if you get these few billions (Which BTW will be eaten up by top army brass, Sharifs, Zardaris and their cronies ) , what's your plan next? Get more loans?
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Azaree Apr 08, 2023 05:23pm
Con artist par excellence!
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Tulukan Mairandi Apr 08, 2023 05:46pm
Guess who it is? Iron brother China and ummah UAE.
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Ash Chak Apr 08, 2023 05:52pm
Where are the structural reforms? Loans will only lead to bigger and more expensive loans. Everyone agrees that the country needs to stop going repeatedly to the IMF, but no one,.did or is doing anything about it.
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BK Apr 08, 2023 07:15pm
PDM is not a legitimate government of Pakistan! You do not represent the will of the people and do not carry the mandate! If these so called friendly countries are truly friends of PAK (and not friends of these crooks) they should withhold funding. Funds should not be given to a government imposed on the people by the military establishment both of whom are destroying rule of law, imprisoning civilians for their political affiliation, violating basic human rights, violating the constitution of the country and destroying whatever little judicial, political, institutional setup the country has…all for their personal gains and big egos
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HashBrown® Apr 08, 2023 07:30pm
This useless clown could be replaced by any middle aged Punjabi uncle and nobody would notice any difference. The only thing worse than a beggar is a beggar that pretends he's not begging...what a disgrace to our country.
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sajid Apr 08, 2023 07:45pm
pakistan badly needs to cut its defence spending. just make good relationship with your neighbours., open trade with india. put aside these so called generals ego and attitude. otherwise pakistan is doom. its sad to a finance minister has to deny that we r not beggars whereas prime minister has endorsed that we r beggars thus we can not be choosers.
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Miannawazshit Apr 08, 2023 07:57pm
One word. "Liar".
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Az_Iz Apr 08, 2023 08:22pm
Putting the friendly country in a spot. How is that going to help in the long run. This guy is incompetent enough to play this game.
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Az_Iz Apr 08, 2023 08:32pm
Getting kicked around. From IMF to China and then to brotherly countries. By the way, do you still think you can bring the rupee to around 200, or have you learnt one basic lesson, on the job.
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AmirSh Apr 08, 2023 09:47pm
Liar, liar, liar...No one believes you. Financial Czar- Ishaq Dar!!!
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TimeToMovveOn Apr 08, 2023 11:43pm
@sajid, Dear friend, the sad thing is that you are already trading with India, via Dubai. Just buying the same products at very expensive prices. European countries are importing backdoor Russian oil from Indian refineries. India buys oil in bulk at the cheapest rate in the world. Overnight, we can reduce Pak inflation by supplying oil. But then people think that trading with India would dilute the Kashmir cause. What diluted the Kashmir cause is the weak economy of Pakistan. Unfortunately, there is no wisdom in Pakistan's foreign policy.
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test Apr 09, 2023 01:32am
Going to IMF and taking loan from IMF would be a worst decision if the govt didn't commit any reforms. First reform the economy especially the spending of the elite class such as politicians, generals, businessmen, policy makers, judiciary and media houses etc. Close assembly plants and produce goods locally. Know the difference between assembling and manufacturing. Assembling is the joining of imported parts and imported raw material together in factories. Manufacturing means to produce goods locally using local parts and local raw material. Assembling provides hardly a thousand job while manufacturing will certainly provide tens of thousands of jobs. Ban foreign companies and produce local competitors. Ask the foreign companies to manufacture their products in Pakistan and bring billions of dollars in investment and if they don't obey ask them to please leave the market of 250 million people. Cut non development budget. Know the difference between assembling and manufacturing idiots.
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test1 Apr 09, 2023 01:33am
Half of the economic issues will be solved if the elite class knew the difference assembling and manufacturing. I repeat half of the economic issues will be solved and that's my guarantee.
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bonce richard Apr 09, 2023 05:25am
@Parvez, He belongs to Punjabi they always blame on others, and they never accepted their mistakes. They ruined our country through corruption and money was transferred to the UK.
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bonce richard Apr 09, 2023 05:27am
@Ulgen, Punjabi's next plan to sell the country. Our army has already been involved in corruption since Zia took the power.
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bonce richard Apr 09, 2023 05:28am
@BK, PDM is the legal govt because mostly corrupted Punjabi involved including the army.
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bonce richard Apr 09, 2023 05:30am
@TimeToMovveOn, Punjabi are very expert so they divided our country in 1971. Very soon we have more parts.
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