Pakistan IMF Deal: IMF rubbishes Shehbaz Sharif’s claim, tells how far Pakistan is from getting loan – pakistan imf news pakistan still half way to clinch staff-level imf deal

IMF awaits assurance from Pakistan

In a statement, the head of the IMF mission in Pakistan, Nathan Porter, said that we look forward to obtaining the necessary financing assurances from Pakistan at the earliest to pave the way for the successful completion of the review of the Ninth Extended Fund Facility, The Express Tribune reported. Looking forward to High officials of the Government of Pakistan reported that the IMF was seeking confirmation of a total loan of $6 billion, which Pakistan urgently needed to bridge the external debt gap. He said that the Government of Pakistan is working hard to arrange the remaining three billion dollars by next week.

Pak Finance Minister had requested the IMF

Just four days ago, Pakistani Finance Minister Ishaq Dar requested the IMF to show some flexibility and approve the staff-level deal. This will automatically open the way for arranging the rest of the loan. The IMF had directed Pakistan to arrange six billion dollars from the lending countries. Only after this, the IMF is going to present a proposal to its board for the approval of the separate installment of the loan. However, Pakistani officials are apprehensive that it may take some time for Pakistan to arrange the remaining three billion dollars.

Pakistan trying to get loan from commercial banks
The Government of Pakistan has cited loans from foreign commercial banks as one of the sources of bridging the gap. However, finance ministry officials said negotiations and then disbursement of external commercial loans would take four to six weeks. He said that if these foreign commercial banks just give assurances to the IMF, it will be enough to get the deal done. Foreign banks are reluctant to extend any fresh financing due to Pakistan’s poor credit rating.