Pakistan again says it has met all prerequisites to obtain crucial bailout funds from IMF

Karachi, Pakistan: Pakistan reiterated at a meeting with the International Monetary Fund on Thursday that it has met all prerequisites to obtain crucial bailout funds from the lender.

Pakistan’s foreign exchange reserves are less than a month’s worth, and it has been waiting since November for an IMF rescue package worth $1.1 billion due to problems with its fiscal strategy.

The money is a part of a $6.5 billion rescue plan that the IMF authorised in 2019 and analysts think is essential for Pakistan to avoid defaulting on its foreign payment obligations. The money can only be released after signing a staff-level agreement (SLA).

“The finance minister further shared that all prior actions for 9th Review under the Extended Fund Facility have already been completed and Government of Pakistan is fully committed to fulfill its obligations as agreed with the IMF,” the finance ministry said in a news release.

The statement said discussions included economic and financial policies, reforms and initiatives to implement ongoing IMF programs.

It added that Antoinette Moniso Sayeh, deputy managing director at the IMF, supported continuing to work together and was confident of signing the SLA very soon.

“The finance minister also shared that all the international obligations have been addressed in time,” it added.

On Wednesday, Pakistan’s finance ministry released a statement following talks with the IMF’s Middle East and Central Asia Director Jihad Azour.

“Mr Jihad Azour expressed confidence that SLA expected to be signed soon which to be followed by the Board’s approval for the 9th Review,” said the ministry in a tweet.

Pakistan’s finance minister cancelled a visit to Washington for spring meetings of the International Monetary Fund and World Bank, citing domestic political turmoil, but has been attending virtually.