Pakistan IMF Loan: So IMF canceled the deal with Pakistan! 8 billion dollars will have to be arranged by December – seems imf deal for Pakistan canceled as country needs to arrange 8 billion dollars
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Why does Pakistan need so much money
The IMF has been asked to arrange an amount of eight billion dollars as repayment of external debts. How will this amount be repaid in the next seven months, this is the biggest question before the Shahbaz government. There was a demand from the IMF that its approval should be taken on the upcoming budget for the financial year 2023-24, but it has not been completed yet. If sources in the government are to be believed, now the possibilities of early completion of the stuck ninth review of Extended Fund Facility (EFF) have also reduced. Sources say that the IMF has sought additional financing of $6 billion to $8 billion for the May-December 2023 period to ensure loan repayments.
problem due to delay
However, Pakistan has not yet accepted the new additional financing demand. The currently ongoing Fund program ends in June 2023. If experts are to be believed, then it should not put any conditions for taking the program forward. In February this year, the IMF had asked Pakistan to arrange $6 billion, excluding rollovers and refinancing, by June 2023 to meet debt repayments and prevent further drawdown in foreign exchange reserves. Due to the delay in arranging this amount, even the ninth review program for $ 1.2 billion could not be completed.
friend who broke his promise
If sources are to be believed, on Monday Finance Minister Ishaq Dar had told the IMF Executive Director that Pakistan has completed the earlier action plan. Saudi Arabia has promised a loan of two billion dollars to Pakistan and the United Arab Emirates (UAE) has promised a loan of one billion dollars. According to sources, the finance minister informed the executive director that the remaining $3 billion could be arranged only if the IMF announces a staff-level agreement and the board approves the ninth review with the $1.2 billion tranche. The IMF representative did not respond to a question whether Pakistan needs to arrange $8 billion to meet its external debt repayment requirements from which date till December?
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