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IMF remains engaged with Pakistan on bailout programme: report

  • Pakistan authorities have committed not to introduce fuel cross-subsidy scheme in F23 and beyond, says IMF spokesperson
Published May 11, 2023

The International Monetary (IMF) remains engaged with Pakistan on securing funding and policy assurances with the goal of reaching an agreement on the ninth review of the $6.7 billion loan agreed in 2019, a spokesperson for the Washington-based lender said, reported Bloomberg on Thursday.

The remarks come after violent clashes between supporters of former prime minister Imran Khan and police broke out across the country after Pakistan’s anti-corruption agency arrested the former prime minister on Tuesday.

Pakistan’s deepening political turmoil douses hopes for IMF relief

The latest rupture in Pakistan’s feverish politics comes as the 230-million-population nation prepares to hold tightly-fought elections in the autumn while facing its worst economic crisis in decades, with dwindling reserves and a stalled IMF bailout programme that is expiring in June and scarce other financing sources in sight.

Various measures including a floating exchange rate, additional taxes, and hike in energy tariffs have failed to convince the IMF to resume the bailout.

In its report on Thursday, Bloomberg said the IMF declined to comment on arrest of Imran Khan, but added that the IMF sees no indication that Pakistan wants to pause negotiations on disbursement from the current programme.

“Pakistan authorities have committed not to introduce fuel cross-subsidy scheme in F23 and beyond,” added the IMF, referring to the fuel package announced by Prime Minister Shehbaz Sharif that has not yet taken a final shape.

The IMF’s Pakistan representative did not immediately respond to a request for comment by Business Recorder.

The IMF bailout is widely seen as crucial for the South-Asian country that also faces the risk of default unless it receives massive support.

Earlier, Moody’s Investors Service warned that Pakistan could default without an IMF bailout as the country faces uncertain financing options beyond June.

“We consider that Pakistan will meet its external payments for the remainder of this fiscal year ending in June,” Grace Lim, a sovereign analyst with the ratings company in Singapore, was quoted as saying.

“However, Pakistan’s financing options beyond June are highly uncertain. Without an IMF programme, Pakistan could default given its very weak reserves.”

Meanwhile, the IMF Executive Board has issued meetings scheduled till May 17, but Pakistan is not on the agenda, reported Business Recorder on Tuesday.

According to the IMF Executive Board calendar available on its website, next meetings are scheduled for May 11, 15, and then again on May 17, 2023; however, Pakistan is not on the agenda though it could be added in the event that the ninth review is declared a success.


Comments are closed.

Haq May 11, 2023 11:55am
We don't need IMF, it will bring only pain & suffering to masses
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Parvez May 11, 2023 12:12pm
The IMF is an extension of US foreign policy.....the sooner we internalise this fact the better for us.
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Aamir Latif May 11, 2023 01:59pm
With pti, a goon and cult party, Pakistan turbelance and econimic miseries will not end..... IMF or no IMF, internal stability is the critical element which under in or out power will not be achieved.
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Muhammad Ali May 11, 2023 03:08pm
IMF engagement with Pakistan is up to their thumb over our master artery.
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Jani Walker May 11, 2023 03:23pm
Default and restructuring are the only way out. This will have to be done within this year. The people of this blighted land will suffer like nothing else they have known as yet. The people will pay the price. The rich will decamp to various foreign abodes of theirs. What a shameful situation.
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Qamar May 11, 2023 03:45pm
I don't understand why IMF keeps giving loans to these corrupt people. They can't cut off there own expenses. They living luxury life. They putting moor and moor load on poor public. They have money to feeds their kids. Did IMF can't see the public lines for having flour? Jus raw flour.
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TimeToMovveOn May 11, 2023 06:54pm
@Haq, It not enough saying you dont need IMF. You need to articulate how you are going to pay back the loans. All countries --your friend CHina, UAE, and KAS, have pledged their loans based on IMF reforms. So if you dont want IMF, what plan do you have to pay the $37B due this year. One way is to default. Try doing that. Bravado is not enough, the zionists who you hate are keeping your country alive.
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Shiraz May 11, 2023 11:20pm
Destroying pakistan for one billion dollars.
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Tayyab Riaz May 12, 2023 05:31am
@Haq, the other option is dafualt and debt restructuring and many years of painful reforms
thumb_up Recommended (0)
Abdullah May 12, 2023 01:06pm
Dear imf keep it tight and squeeze the govt more so the rich can be taxed this time
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Khalid May 13, 2023 04:45am
IMF stalled the program just to support Imrando who is the agent of international establishment.
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