Pakistan hopes to finalise IMF bailout deal in June

By Staff Reporter

ISLAMABAD: Pakistan hopes to finalise a $1.1 billion tranche from the International Monetary Fund (IMF) bailout program by the end of June, Prime Minister Shehbaz Sharif said on Friday.

Sharif said Pakistan had fulfilled all the prerequisites for the release of the tranche, including implementing prior actions such as raising fuel prices and electricity tariffs.

“We have not only accepted all conditions of the IMF but have also implemented the prior actions required from us,” Sharif said in a speech to his cabinet. “We must hope that, as we have fulfilled all the conditions, the IMF’s ninth review will be completed this month after seeking approval from the lender’s board.”

The IMF’s ninth review of Pakistan’s $6.5 billion bailout program has been stalled since November last year.

The cash-strapped country presented its budget for the fiscal year 2023-24, at a time when it is in desperate need of bailout funds from the IMF. Pakistan’s foreign currency reserves of less than $4 billion are barely enough to cover a month’s imports.

Sharif said he had spoken to IMF Managing Director Kristalina Georgieva on the phone and had received “verbal” assurances regarding the release of the funds.

“I suggested to her that if she provided me with a verbal commitment [regarding the signing of the agreement], we would take a few more steps the lender had asked for. Once we received the verbal commitment from her, we took those steps too, so now, no other [requirements] are left that could turn out to be an impediment in signing this deal.”

Sharif said Pakistan was grateful for the support of friendly countries such as Saudi Arabia and the United Arab Emirates, which had provided $3 billion in financial assistance.

“They helped a lot by sending $3 billion to us in a timely manner, $2 billion by KSA, and $1 billion by the UAE.”