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Har Pakistani Ki Khabar

PAKISTAN-IMF LOAN AGREEMENT DELAYED AFTER ‘NEW DEMAND’

ISLAMABAD: Despite the assurances from friendly countries about external funds to Pakistan, the International Monetary Fund (IMF) still showing a lack of confidence and asking Islamabad to ‘do more’ to unlock loan programme, ARY News Reported

The sources claim that Pakistan has been asked to provide an IMF repayment plan for a loan of $3.7 billion in June and that it must also show stronger support from allies in order to fulfil the commitment.

A proposal to exchange reserves equal to two months’ worth of revenues, or between $11 and $12 billion, has reportedly been rejected by the IMF.

Sources within Ministry of Finance revealed that the government has imposed Rs. 170 billion in taxes through the mini-budget in a bid to secure a staff-level agreement with the IMF, which was originally scheduled for February 9.

It is pertinent to mention here that the IMF issued the schedule of board meetings in which Pakistan is not included in any agenda until May 17.

Funding will also not be available from international financial institutions as the staff-level agreement is not reached, moreover, the budget-making process can be affected if transactions with the IMF are not concluded.

The staff-level agreement between Pakistan and the IMF was once again ‘delayed’ due to a new demand made by the lender last month.

According to reports, the meeting between Finance Secretary Hamid Yakoob and the International Monetary Fund in the US was ‘unfruitful’ because the international lender had already provided a plan to secure $1 billion from commercial banks to unlock the loan programme.

The staff-level agreement was supposed to be signed on February 9, but because of IMF requirements, it wasn’t until later that day.

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