By Staff Reporter
KARACHI: Finance minister Ishaq Dar on Friday said he will not take dictation from the International Monetary Fund (IMF) on managing the country’s finances and would prioritise Pakistan’s economic interests.
Pakistan’s ninth review talks with the IMF for the release of its next tranche are delayed since September because the country is not yet finished assessing the financial impact of this year’s devastating floods.
The IMF wants Pakistan to quantify the damage before moving forward with another $500 million loan tranche under the bailout programme. Pakistan secured a $6 billion bailout in 2019 under an Extended Fund Facility (EFF) that was topped up with another $1 billion earlier this year.
Both sides are engaged in technical-level talks but failed to agree on a staff-level policy discussion to proceed with the ninth review.
“I don’t care if they (IMF) come. I don’t have to plead before them. I have to look at Pakistan’s matters,” Dar said on a private TV in reply to questions on a delay in the arrival of the IMF team.
“I have never taken dictation and never will from these institutions, I have to look after Pakistan’s interests,” Dar said. “If they don’t come… we will manage … no problem.”
Dars said all targets for the IMF’s ninth review had been completed, and the international lender was “behaving abnormally” by not completing the review.
“Our ninth review is in order. Everything is in order and under… I have reassured them … you (IMF) should come and give Pakistan the $500 million funds.” “If the money doesn’t come, we will manage, no problem,” the minister added.
Dar said the country would secure $3 billion in external financing from a friendly country in the next two weeks.
“There is a positive understanding and we would definitely receive the funds… This is a matter of two weeks.”
The fund’s programme is a lifeline to the country as Pakistan is in an economic crisis, facing high inflation, a depreciating currency, and a current account deficit. The recent rise in commodity and energy prices has exacerbated its debt problems. It has been struggling to pay for its imports and debt obligations as its official liquid foreign exchange reserves shrank $7.5 billion in the last week.
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