Finance Minister Ishaq Dar on Wednesday met with US Ambassador to Pakistan Donald Blome to discuss the ongoing negotiations with the International Monetary Fund (IMF), providing an update on the progress made.
The Ministry of Finance issued a statement affirming the government’s commitment to completing the programme with the IMF before the impending deadline.
Pakistan’s ninth review under the 2019 Extended Fund Facility (EFF), which aims to secure $1.2 billion, remains pending with less than 10 days remaining until the programme’s expiration on June 30. Last week, the IMF raised concerns about certain measures proposed in Pakistan’s fiscal year 2024 budget, which were seen as contradicting the conditions of the EFF programme.
Esther Perez Ruiz, the IMF representative for Pakistan, emphasised that Pakistan needs to address three key issues, including the budget for the upcoming fiscal year, before the pending tranche can be released. As the deadline approaches and the IMF’s reservations regarding the budget persist, concerns have grown about the likelihood of a successful agreement.
Despite the challenges, the government has expressed its flexibility and ongoing engagement with the IMF to find a mutually beneficial solution. Pakistan’s dwindling foreign reserves have heightened the urgency for an IMF bailout, as failure to secure it could result in default.
Dar also highlighted the government’s efforts to reduce the fiscal gap and fulfill national and international financial obligations. The statement further mentioned the government’s economic policies and priorities to address the current economic challenges and foster stability and growth.
Bloome expressed confidence in the government’s economic programes and extended his support to strengthen bilateral economic, investment, and trade relations between the two countries.
