In a crucial development on Tuesday, Prime Minister Shehbaz Sharif recently engaged with International Monetary Fund (IMF) Managing Director Kristalina Georgieva via phone call, expressing hope for an imminent decision on the release of bailout funds.
As the country’s economy faces severe challenges, this awaited decision carries significant implications for the nation’s financial stability.
The PM’s Office released a statement that the IMF chief and the prime minister discussed matters related to the stalled bailout programme. According to the statement, the premier has expressed hope that coordination on the points of the bailout programme would lead to a decision from the Washington-based lender in a day or two.
“The prime minister also reiterated his determination to achieve the goals of improving the economic situation through joint efforts,” the statement added.
With the ninth review under the 2019 Extended Fund Facility (EFF) still pending and the program set to expire on June 30, time is running out to secure the much-needed $1.2 billion tranche from the IMF. The prime minister’s back-to-back meetings with Georgieva in Paris last week reflect the urgency of the situation.
The IMF had raised concerns about Pakistan’s budget for the upcoming fiscal year, stating that certain proposed measures contradicted the conditionality of the EFF program. In response, the government took proactive steps to address these concerns and ensure alignment with the IMF’s requirements. Changes to the budget were implemented, including additional tax measures, spending cuts, and the lifting of import restrictions, in a last-ditch effort to secure the critical funding.
During the phone call, the IMF chief acknowledged the efforts of Finance Minister Ishaq Dar and his team in completing the pending bailout program. Furthermore, the IMF expressed its desire to witness improvements in Pakistan’s economy and appreciated the Prime Minister’s unwavering commitment to this cause.
Pakistan’s economic future hangs in the balance as the awaited decision from the IMF draws near. The country’s economy is in the midst of a severe crisis, with record levels of inflation and interest rates. Securing the IMF loan is paramount to avoid defaulting on foreign debt obligations and to stabilise the financial landscape.
As the clock ticks down to the program’s expiry, the Prime Minister remains determined to achieve the pre-determined targets and goals for economic improvement through joint efforts. The government’s flexibility in addressing the IMF’s concerns demonstrates its willingness to work towards a mutually beneficial resolution.
All eyes are now on the upcoming IMF decision. The fate of Pakistan’s economy hangs in the balance, and the nation eagerly awaits the outcome that will shape its financial trajectory in the months to come.
