29 C
Lahore
Monday, October 2, 2023
LocalGovernment claims to have fulfilled loan requirements, but IMF...

Government claims to have fulfilled loan requirements, but IMF disputes that

-

- Advertisement -
- Advertisement -

IMF

ISLAMABAD: The International Monetary Fund (IMF) said on Friday that the $1.2 billion ninth review of the bailout programme will be finished if the requisite money was in place and the agreement was finalised. The IMF noted that there had been an agreement on the problem between the two parties.

As it refutes the government’s assertion that it had taken all earlier activities required to complete the 9th review, the statement, which was supplied to The Express Tribune, illustrates a growing trust gap between Pakistan and the IMF.

The government would also need to satisfy the global lender with the policies it plans to implement, including the budget for the fiscal year 2023–24. According to officials from the finance ministry, this need amounts to revising the policies.
IMF Mission Chief to Pakistan Nathan Porter said, “The IMF continues to work with the Pakistani authorities to bring the 9th review .
There was no need for delaying the deal, according to Prime Minister Shehbaz Sharif and Finance Minister Ishaq Dar, who maintained that Pakistan had satisfied all of the pre-established requirements.

Finance Minister Ishaq Dar stated on Thursday that Pakistan has previously complied with all preceding activities for the IMF’s ninth assessment in an article that appeared in an English-language newspaper. Dar said that the IMF and staff level agreement were anticipated to sign the staff level agreement shortly, which Nathan’s assertion, however, refuted what the Pakistani government has been asserting ever since the unsatisfactory conclusion of the face-to-face negotiations on February 9.

Nathan omitted to specify the amount of money Pakistan must arrange in order to complete the 9th review of the $1.2 billion loan tranche, which has been postponed by seven months.

Pakistan needs $6 billion, according to the finance minister, to close the funding shortfall through the end of current year in June. Although Saudi Arabia and the United Arab Emirates have promised Pakistan $3 billion in financing, there are no concrete guarantees for the remaining debts.
The gross official foreign exchange reserves of Pakistan are still at $4.5 billion. By the end of this year in June, the nation would owe the rest of the world close to $4 billion in principle and interest on debt, including China’s $1 billion SAFE deposit.

Pakistan also has to organise cash to repay the loans during the first half of the following fiscal year since the government does not have a reliable finance plan for the period of time between July and December of the following fiscal year, according to the sources.

Total repayment of external debt, including interest, for the months of July through December is $11 billion. Pakistan will need to repay the foreign creditors more than $4 billion even if China and Saudi Arabia refinance their short-term obligations.
In his remarks, Nathan Porter also brought up the upcoming fiscal year’s budget, which the administration hopes to release around June 10. Porter said that the IMF also helps the government implement policies in the next years, including technical work on the fiscal 2024 budget that must be approved by the National Assembly by the end of June.

The IMF’s latest requirement appeared to annoy the Ministry of Finance, which was already having trouble meeting previous requirements. Senior members of the finance ministry urged that the IMF shouldn’t tie budget approval for the next year to the acceptance of the 9th review.

When discussing the 11th budget, they advised that the topic of the fiscal year 2023–24 budget be brought up.
The $6.5 billion IMF plan is about to expire in less than two months. Pakistan and the IMF can comfortably finish the three programme evaluations that are still pending.

Despite receiving a nine-month extension in the project from previous finance minister Miftah Ismail, Pakistan’s failure to meet the programme requirements on time resulted in the non-disbursement of $2.6 billion of the $6.5 billion.

According to the sources in the finance ministry, the finance secretary recently requested Nathan Porter to reconsider the request for a budget agreement for the following year.
However, the IMF might not provide Pakistan with much respite because it is already upset by the government’s conflicting statements over the fulfilment of the requirements.

There are worries that the coalition administration may try to introduce a politically motivated budget, making it harder to pull the nation out of the current economic crisis soon.

Table of Contents

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

Introduction to Shah Rukh Khan

Explore the life, career, and influence of Shah Rukh Khan, Bollywood’s reigning King, and dive into some untold facts and insights about his journey and impact on the film industry.

Maryam Nawaz Sharif: A Comprehensive Examination

Explore the intricate details of Maryam Nawaz Sharif’s life, her political journey, and the influence she holds, revealing 10 pivotal facts and insights.

Understanding Vladimir Putin: A Comprehensive Exploration of Russia’s Long-Standing Leader

Explore intriguing insights into Vladimir Putin, delving deep into the life, decisions, and policies of Russia’s prominent leader. Discover the facts that have shaped his enduring legacy.

Narendra Modi: India’s Transformative Leader – 10 Facts Revealing his Impactful Governance

Explore the journey of Narendra Modi, India's transformative leader, and delve into 10 fascinating facts about his impactful governance and significant accomplishments.

Exploring the Enigma: Asif Ali Zardari

Delve deep into the life and political journey of Asif Ali Zardari, a significant figure in Pakistani politics, with detailed insights into his career and legacy.

Imran Khan Biography

Explore the life of Imran Khan in this comprehensive biography. Learn about his early years, achievements, and his impact on Pakistan's history.

Must read

Introduction to Shah Rukh Khan

Explore the life, career, and influence of Shah Rukh Khan, Bollywood’s reigning King, and dive into some untold facts and insights about his journey and impact on the film industry.

Maryam Nawaz Sharif: A Comprehensive Examination

Explore the intricate details of Maryam Nawaz Sharif’s life, her political journey, and the influence she holds, revealing 10 pivotal facts and insights.
- Advertisement -

You might also likeRELATED
Recommended to you