ISLAMABAD: Pakistan's finance minister Ishaq Dar met on Tuesday with Saudi Arabia's Ambassador Nawaf Bin Said Al-Malki and informed him about the policies and programs the Pakistani government intended to undertake in the upcoming budget to end an economic impasse in the South Asian country, the Pakistani finance ministry said, amid a delay in the International Monetary Fund (IMF) bailout program. 

The meeting between the Saudi ambassador and Dar comes at a time as Pakistan continues to make desperate attempts to secure the crucial IMF funds ahead of the federal budget in the first week of June. 

Pakistan has been facing delays in the $7 billion IMF program, signed in 2019, since November last year. Despite implementing tough conditions, the Fund and Pakistani authorities have not been able to finalize a 9th review of the program that would lead to the disbursement of $1.1 billion and unlock financing from other donors.     

Since January, several rounds of talks between the IMF and Pakistan have failed to revive the program, leaving the cash-strapped South Asian nation with barely a month's cover for import payments. The situation has led to fears of a default on the country's international financing obligations as the IMF program nears its expiry on June 30. 

"The Finance Minister also apprised the Ambassador of Kingdom of Saudi Arabia of policies and programmes of the Government to bring economic prosperity in the country through the upcoming budget," Pakistan's Finance Division said in a statement. 

"Finance Minister Senator Muhammad Ishaq Dar expressed gratitude toward Kingdom of Saudi Arabia for continuous support and cooperation with Pakistan." 

On the occasion, the Saudi ambassador reciprocated the sentiments about a long-term relationship among both countries and shared the Kingdom's desire to further strengthen economic and commercial ties with Pakistan, according to the statement.  

Pakistan and Saudi Arabia have deep cultural, defense and economic ties, deeply rooted in history and religion. The Kingdom is home to over two million Pakistanis, making it the largest contributor to remittance inflows into the South Asian country. 

Pakistan, as part of the IMF terms, has taken tough measures that include reversal of subsidies in the power, export and agriculture sectors, increase in energy prices, and a permanent power surcharge among others.  

The steps also include an increase in the key policy rate to an all-time high of 21 percent, a market-based currency exchange rate, arranging for external financing, and raising more than Rs170 billion ($613 million) by imposing new taxes. 

Recently, some media outlets reported Pakistan had been facing delays in the completion of the 9th review as the IMF wanted assurances that the bailout funds would not be utilized for "political purpose." Pakistani finance authorities denied veracity of the reports. 

"It is clarified that this news is false and unfounded as the IMF has never raised any such concern with the government nor any funds can be utilized for any purpose without the approval of parliament through the budget," the Finance Division said last week.