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IMF wants more 'necessary funding assurances' for successful completion of Pakistan's 9th review

  • Mission Chief for Pakistan Nathan Porter says there was agreement between Pakistani delegation and IMF staff/management to maintain strong policies and secure sufficient financing
Published April 15, 2023

The International Monetary Fund (IMF) said it is looking forward to obtaining the necessary financing assurances as soon as possible to pave the way for the successful completion of the 9th Extended Fund Facility (EFF) review, a statement that comes after Pakistan secured $3 billion in fresh inflow from Saudi Arabia and the UAE.

"We welcome the recent announcement of important financial support to Pakistan from key bilateral partners," Nathan Porter, IMF Mission Chief to Pakistan, was quoted as saying in a statement to Business Recorder.

"During the meetings between the Pakistani delegation and IMF staff and management, there was agreement on the need to maintain strong policies and secure sufficient financing to support the authorities’ implementation efforts.

"The IMF is supporting these efforts and looks forward to obtaining the necessary financing assurances as soon as possible to pave the way for the successful completion of the 9th EFF review."

Porter's statement did not give details on the additional financing amount, but implied that the staff-level agreement could still be a few steps away for Pakistan as the country is required to arrange fresh foreign exchange inflow.

Before the new bilateral support, reports suggested that at least $5 billion of inflow was required to be arranged -- even after the narrower current account deficit.

China's rollover of $2 billion, and refinancing of another $2 billion -- which included $1.3 billion from the Industrial and Commercial Bank of China (ICBC) and $700 million from China Development Bank -- is not categorised as a new inflow.

On Friday, Pakistan had announced financial support from the UAE, days after Minister of State for Finance Aisha Ghaus Pasha also said Saudi Arabia had assured the IMF it will provide a $2 billion loan to the South Asian country.

Finance Minister Ishaq Dar said the UAE had promised a billion dollars to prop up Pakistan’s forex reserves — which at their current level of $4.04 billion can barely pay for four weeks of imports.

“UAE authorities have confirmed to IMF for their bilateral support of US$ one billion to Pakistan,” Dar tweeted.

He added that the country’s central bank was preparing the documentation to receive the deposit.

Pakistan was required to give an assurance that its balance of payments deficit is fully financed for the remaining period of the IMF programme that has been stalled since November last year.

Pakistan’s economy has crumbled alongside a simmering political crisis, with the rupee plummeting and inflation at decades-high levels, while devastating floods and a major shortage of energy have piled on further pressures.

At the same time, a staff-level agreement with the IMF has remained elusive even after domestic taxation measures and a free-floating exchange rate.

Bilal Memon

Bilal Memon is the Head of Digital Content at Business Recorder. His Twitter handle is @bilalahmadmemon


Comments are closed.

Tulukan Mairandi Apr 15, 2023 02:37pm
I have repeated this time and again. The IMF deal is dead. Not happening. Pakistan WILL default, there will be civil breakdown and banks will collapse. IMF knows this.
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Aurangzaib Apr 15, 2023 03:07pm
@Tulukan Mairandi, you will be disappointed,
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Mian Nawaz Sharif Apr 15, 2023 03:09pm
@Tulukan Mairandi, Please extend my warmest regards to Modi Ji and tell him that we rejoice with him at your analyses of this country.
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Maqbool Apr 15, 2023 03:29pm
How come Qatar that enjoys a specially close relationship with the Sharif family, and who we buy billions of RLNG from has refused to give any monetary support to Pakistan ? Only uae and Saudi and china have supported us .
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Muhammad Yakoob Apr 15, 2023 03:32pm
We are actually in the incorrect direction. Our internal politics is harming more than our external issues. Our politicians are not sincere to this country nor the people of this country. Irrespective, of whether they are in the opposition or on the ruling seat, both are insincere. They are more interested in their seats rather than in this country. It is a time they should sit together and resolve our crucial issues rather than fight for their turn to rule the country. We must condemn both, as we are not getting anything good from them.
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Noname Apr 15, 2023 03:45pm
@Aurangzaib et al - which other country left to beg?
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Humair Apr 15, 2023 03:53pm
Because Pakistan country and Pakistani public healthcare workers strongly supports is imf kick fund only need to govt Pakistani is s business prepaid public standing up then imf one days ask to cries when you need it was actually accept helping ask Pakistani public also giving take you to right
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Muhammad Ali Apr 15, 2023 04:00pm
Economic stability expectation from the routed lot is foolish. Pakistan will continue to import every thing on begged money to ensure complete meltdown.
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Abdulsattar Apr 15, 2023 05:01pm
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Farhan Apr 15, 2023 05:37pm
@Tulukan Mairandi, you think usa and allies let a nuclear county default and goes in collpase with taliban beside it. You must be crazy its against interest of usa, Europe and china.
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Mubashir Munir Apr 15, 2023 06:38pm
Please quit IMF programme and go for self reliance restructure all your institutes
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Ching Chong Apr 15, 2023 06:49pm
@Farhan, say hello to USA
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Dr.Salaria, Aamir Ahmed Apr 15, 2023 07:08pm
@Farhan, if that's the case, why beg IMF? Why run with a begging bowl to UAE, China, Saudi etc? Just keep quiet and as you aver, the world will do everything to avoid a Pakistani default. Right?
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Shiraz Ali Apr 15, 2023 07:12pm
IMF Wants POLITICAL security you have THUGS and CLOWNS running the country.
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Love Your Country Apr 15, 2023 07:16pm
Is this the US like "do more" policy that has no end?
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Fazeel Siddiqui (Overseas Pakistani) Apr 15, 2023 08:00pm
Gang of PDM+ seasoned politicians and establishment is miserably failed and literally begging now. IMF has no interest in improving economy of beggars those especially fraudsters in nature.
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Ansar Apr 15, 2023 08:19pm
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Az_Iz Apr 15, 2023 08:59pm
@Tulukan Mairandi, Nehru too had the same misconceptions about Pakistan.
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TimeToMovveOn Apr 15, 2023 09:16pm
@Farhan, I have always wondered why pakistan goes around with a begging bowl. It is this (your) attitude --that other countries wont lets us (nuclear) down--- that makes pakistan keep going in circles. Change yorur mindsent, your country will change.
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Abrar Ahmed Apr 15, 2023 10:07pm
@Tulukan Mairandi, you are one of those human beings whose corpses are used in medical colleges
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Muhammad Apr 16, 2023 05:10am
You must contacting to Pakistan Humans with getting the best for furthermore.
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Ash Chak Apr 16, 2023 08:34pm
Pakistan is fast turning into a new North Korea.
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Hilarious Apr 17, 2023 10:14am
@Maqbool, ah yes, the classic choosing beggars syndrome
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Abdullah Apr 17, 2023 02:14pm
To IMF keep it tight.The poor have nothing to loose.Its time the rich pay taxes.
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Abu S Lakhia Apr 18, 2023 12:29am
@Maqbool, If Nawaz Sharif and PMLN deposit $1 billion in Qatar banks similar to what they did in Chinese banks $3 billion, Saudi banks $2 billion, and UAE $1 billion, Qatar will also give guarantees for $1 billion. From now on Pakistan will not get any free money from any country in the world.
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Zeshan Nawaz May 08, 2023 12:23pm
@Tulukan Mairandi, wishful thinking indeed! Pakistan's economy is resilient enough to bounce back.
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