Ayesha Ghaus Pasha hopeful for IMF installment after Saudi Arabia gives money to Pakistan,

ISLAMABAD – As the agreement between Pakistan and the International Monetary Fund (IMF) suffers a long-standing stalemate, Finance Minister Ishaq Dar on Thursday asked US Ambassador to Pakistan Donald Bloom to play his role in helping the agreement inked.

He expressed his thoughts at a meeting with the ambassador, which underscored the exchange of thoughts on matters of mutual interest.

The minister also apprised Mr Bloom of the development on the agreement with the Washington-based lender so far including the assurance of $2billion by Saudi Arabia in additional deposits, and talks going on with the UAE for $1billion in financing.

Mr Bloom assured Mr Dar to help deepen the cooperation.

Earlier, Pakistan moved one step closer to the revival of the crucial bailout package of the IMF as Saudi Arabia provided the assurance.

Pakistan’s loan programme is yet to materialise months after it imposed additional taxes, increased energy prices and allowed the free floating of currency to meet conditions laid forth by the IMF. The nation missed multiple deadlines to revive the deal. Therefore, the lender asked the cash-strapped Pakistan to seek commitments for new loans from Saudi Arabia and the United Arab Emirates (UAE) before it releases the funds.

Reports said the Kingdom is yet to make an official announcement in this regard. It was expected that the Saudi government would announce the new loans for Pakistan during the upcoming visit of Prime Minister Shehbaz Sharif to the country.

Pakistan is now looking towards the UAE to secure another $1 billion deposit in order to reach the staff-level agreement (SLA) with the IMF. Mr Dar is likely to make a stopover in the UAE on his way to the US where he would hold talks on the revival of the loan deal.

Earlier, the IMF’s resident representative for Pakistan said the country has a few more tasks to complete to meet requirements for a $6.5 billion bailout.

Earlier,

Minister of State for Finance Dr Ayesha Ghaus Pasha said that the International Monetary Fund (IMF) has received a commitment from Saudi Arabia that intends to give money to Pakistan.

Talking to the media, she said that after this indication the matter has gone ahead.

The minister further said that talks are going on with the United Arab Emirates as well. “I don’t know if the Finance Minister is going there or not”, she said adding he would be able to move towards the IMF installment only when our talks with the United Arab Emirates go ahead.

It may be recalled that last month, Finance Minister Ishaq Dar had expressed that the fulfillment of financial commitments by friendly countries is the only obstacle in the way of an IMF deal where this loan tranche can save Pakistan from bankruptcy.

In a parliamentary address last week, Prime Minister Shehbaz Sharif also said that the IMF wants to fulfill external financing commitments from friendly countries before issuing bailout funds.

The international lender has been in talks with Pakistan since early February to resume $1.1 billion in funding that is part of a $7 billion bailout package agreed upon in 2019.

The State Bank reserves have fallen to record lows, leaving money for four weeks of imports only.