ISLAMABAD: Pakistan is doubling down on efforts to secure external financing amid its most daunting economic crisis to date, with Finance Minister Ishaq Dar meeting the US ambassador to Islamabad on Wednesday and a top army official embarking on a four-day visit to China this week.
A staff-level agreement with the IMF to release $1.1 billion out of a $6.5 billion package has been delayed since November, with more than 100 days gone since the last staff-level mission to Pakistan, the longest such delay since at least 2008. The program expires at the end of this month while the release of pending bailout funds under the 9th IMF review are crucial for Pakistan to resolve an acute balance of payments crisis. Reserves at the country's central bank can just cover a month's worth of imports.
The South Asian country has recently turned towards "friendly countries" such as China, Saudi Arabia and the UAE for external financing guarantees. Last week, the central bank announced it had received $1 billion from China. Pakistan has also been pushing the US to influence the IMF to approve the bailout package.
On Wednesday, US Ambassador to Pakistan Donald Blome called on Dar to discuss bilateral trade and other matters of mutual interest, the Finance Division said.
"The Finance Minister also shared the economic policies and priorities of the government to address the challenging economic environment and set the economy on the path to stability and growth," the statement said.
Dar informed the US envoy about Pakistan’s budgetary measures to reduce its fiscal gap to meet its national and international financial obligations.
"The Finance Minister also informed the envoy about the progress on the ongoing talks with IMF and stated that the government is committed to completing the program," the statement said.
Separately, Pakistan Army's General Sahir Shamshad Mirza, chairman joint chiefs of staff committee (CJCS), met Chinese Chief of Joint Staff Department General Liu Zhenli on Wednesday.
Mirza, who is on an official visit to China from June 18-22, is heading a delegation that will focus on bilateral defense and security talks between the two countries, the army's media wing confirmed.
"He [Mirza] also said that not only have the military relations of the two countries withstood the test of time, but also high-level cooperation in defense and training has progressed well," the army's media wing said.
Mirza also held wide-ranging bilateral meetings with high-ranking civil and military dignitaries including Qin Gang, Chinese state councilor, Foreign Minister Chen Wenqing, and other key military and government officials.
It was widely reported in Pakistan that the top military official would also discuss economic ties with Chinese leaders.
