By Staff Reporter
ISLAMABAD: Prime Minister Shehbaz Sharif said on Thursday he hoped the International Monetary Fund would release funds under its bailout program soon, after meeting IMF Managing Director Kristalina Georgieva on the sidelines of a summit in Paris.
Sharif and Georgieva discussed the resumption of Pakistan’s $6.7 billion Extended Fund Facility (EFF), which was agreed upon in 2019 and has been stalled since November due to differences over how to fill the country’s debt financing gap.
The meeting comes days before the scheduled end of Pakistan’s current IMF program.
“Views were exchanged about the ongoing programs and cooperation between Pakistan and the IMF,” Sharif’s office said in a statement.
“The Prime Minister expressed hope that the funds allocated under the IMF’s Extended Fund Facility would be released as soon as possible. This would help strengthen Pakistan’s ongoing efforts toward economic stabilization and bring relief to its people.”
The statement added that Sharif underscored that all prior actions for the ninth review under the EFF had been completed and the government was fully committed to fulfilling its obligations as agreed with the IMF.
Meanwhile, IMF Managing Director Georgieva shared her institution’s perspective on the ongoing review process.
“The meeting provided a useful opportunity to take stock of the progress in that context,” the statement said.
Pakistan is making a final push to get a ninth tranche worth $1.2 billion before the program expires at the end of June, as the release of pending funds is crucial for Pakistan to resolve an acute balance of payments crisis.
Reserves at the country’s central bank can cover just a month’s worth of imports.
The country has recently turned towards “friendly countries” such as China, Saudi Arabia, and the United Arab Emirates for external financing guarantees.
On Wednesday, U.S. Ambassador to Pakistan Donald Blome called on Finance Minister Ishaq Dar to discuss bilateral trade and other matters of mutual interest, the Finance Division said in a statement.
The minister told Blome that his government was committed to completing the IMF program, and had taken budgetary measures to reduce the fiscal deficit and meet its financial obligations.
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