ISLAMABAD: Prime Minister Shehbaz Sharif said on Saturday the International Monetary Fund (IMF) had “no excuses now” to delay the $1.1 billion tranche for cash-strapped Pakistan since his administration had fulfilled all the conditions laid forth by the lender.
The South Asian country is witnessing one of the worst economic situations in history, triggered by a severe balance of payments crisis, currency depreciation, and soaring inflation. Pakistan’s official forex reserves have also touched critically low levels in recent months and currently stand at a point where they barely cover three weeks of import. To keep the economy afloat and avert the possibility of default, the government seeks external financial support that requires the resumption of a $6 billion bailout facility signed with the IMF in 2019 which was topped up to $7 billion last year.
Pakistan has imposed additional taxes and removed fuel and power subsidies to secure the IMF tranche that remains pending since last September. The international lending agency also asked the country to seek assurances of financial support from friendly nations. So far, China has rolled over $1.3 billion of loan to Islamabad, Saudi Arabia has pledged $2 billion, and the United Arab Emirates has agreed to lend $1 billion to help Pakistan meet the IMF conditions.
“The IMF has no excuses now since we have fulfilled all the conditions which were required for the approval of loan,” the prime minister said during a ceremony in Lahore. “However, we have to decide whether we want to continue living off of loans or become self-reliant.”
Sharif said Pakistan was not created to “run on debts and act like a beggar” since its previous generations had sacrificed a great deal for the country.
He noted the government was doing its best to revive the IMF loan facility which was important for the country to unlock funds from other multilateral and bilateral donors.
The prime minister thanked Saudi Arabia and the UAE for pledging financial support while lauding foreign minister Bilawal Bhutto-Zardari, finance minister Ishaq Dar, and the new army chief, General Asim Munir, for holding talks with friendly countries to stave off the economic crisis.
The IMF also welcomed the announcement of financial support to Pakistan by key bilateral partners recently, though its mission chief said on Saturday the global lender was still seeking “necessary” assurances before releasing the money.
