Ahmed Mukhtar Naqshbandi
ISLAMABAD: Following ten days of difficult talks with the International Monetary Fund (IMF), Pakistan could not reach to an agreement to unlock a 1.1 billion dollar loan tranche yet.
The MInister looked quite hopeful in the morning statement but later, the things remained to be finalized.
The final virtual meeting took place between Prime Minister Shehbaz Sharif and the IMF delegation, where the mission informed the premier about the agreement, local media reported.
The premier, who interacted with the Fund officials in Islamabad via video link from Lahore, nodded the agreement.
IMF’s loan is critical for Pakistan
The IMF’s loan tranche is critical for the country’s 350 billion dollar economy as the foreign exchange reserves held by the State Bank of Pakistan have fallen to 2.91 billion dollars, enough only to provide an import cover of just 18 days.
Initially signed by the Pakistan Tehreek-e-Insaf-led government of Imran Khan in 2019, the 6 billion dollar bailout package repeatedly stalled after his government reneged on subsidy deals and failed on its tax collection pledges outlined in the agreement amid a growing budget deficit.
The incumbent PDM coalition government resumed the program, and in August, it received around 1.17 billion dollars under the 7th and 8th reviews of the Extended Fund Facility (EFF).
