[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]ISLAMABAD: Finance Minister Ishaq Dar announced on Friday that the United Arab Emirates (UAE) had confirmed to the International Monetary Fund (IMF) its bilateral support of $1 billion to Pakistan, the final requirement for completing staff-level agreements with the IMF.
Taking to Twitter, the finance minister stated that the State Bank of Pakistan was now “engaged for necessary documentation for accepting the said deposit from UAE authorities.”
IMF program — 9th Review Update:
UAE authorities have confirmed to IMF for their bilateral support of US $ One billion to Pakistan.
State Bank of Pakistan is now engaged for needful documentation for taking the said deposit from UAE authorities.
AlhamdoLilah!
— Ishaq Dar (@MIshaqDar50) April 14, 2023
IMF meeting
In a previous meeting, Pakistan urged the IMF to be flexible and sign the staff-level agreement; however, despite Islamabad’s growing concerns about the consequences of a worsening economic crisis, no date was set.
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Finance Minister Ishaq Dar made the request during a virtual meeting with Jihad Azour, the IMF’s director for the Middle East and Central Asia Department. However, the minister was unable to obtain the desired outcome because the IMF raised the issue of petrol subsidies and potential fiscal leakages as a result of the plan’s implementation.
Both parties have shared their respective positions on the $6 billion in external financing required by Pakistan from now until June.
The IMF was informed that Saudi Arabia had confirmed its $2 billion loan to Pakistan, and Dar had assured the IMF that the UAE would soon confirm its commitment to provide $1 billion.
According to a press release issued by the finance ministry, the two sides also discussed the progress made on the IMF programme, particularly the discussions held with the IMF mission during its visit to Pakistan, and the implementation of prior actions.
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The current account deficit remained at $3.9 billion in the first eight months of this fiscal year. Dar assured the IMF that if the Fund signed the staff-level agreement, Pakistan would secure an additional $2 billion loan from the World Bank, the Asian Infrastructure Investment Bank, and commercial banks.
However, the IMF requested that commercial loans be arranged prior to the staff-level agreement, which Pakistan is unable to meet in the absence of the IMF umbrella.[/vc_column_text][/vc_column][/vc_row]
