Pakistan committed to completing IMF programme – finance minister

Dec 6 (Reuters) – Pakistan is dedicated to finishing the Worldwide Financial Fund programme whereas assembly exterior debt repayments on time, the nation’s finance minister mentioned on Tuesday throughout a gathering with the ambassador of its prime bilateral lender China.

An IMF assessment for the discharge of its subsequent tranche of funding has been pending since September, leaving Pakistan in dire want of exterior financing.

Pakistan’s finance minister, Ishaq Dar, final week informed native tv that each one targets for the IMF’s ninth assessment had been accomplished, and mentioned the IMF was “behaving abnormally” by not finishing the assessment.

“The Finance Minister … apprised the Chinese language Ambassador that the Authorities stays dedicated to finishing the IMF program whereas assembly all exterior debt repayments on time,” Pakistan’s finance ministry mentioned in a press release.

In a separate assertion on Tuesday, the finance ministry mentioned the IMF programme had come “again on monitor” and negotiations for the ninth assessment had been at a sophisticated state.

Pakistan had secured a $6 billion bailout in 2019 beneath an Prolonged Fund Facility (EFF), which was topped up with one other $1 billion earlier this 12 months.

In his assembly with the Chinese language Ambassador, Dar added that Pakistan’s authorities had a “sensible plan” for coping with spending required to rehabilitate areas affected by devastating flooding a couple of months in the past. Officers have estimated injury from floods at $40 billion.

Pakistan is dealing with a widening present account deficit and a steadiness of funds disaster. Dar final week mentioned Pakistan’s international reserves, which have dropped to $7.5 billion, can be shored up with a $3 billion financing from a pleasant nation within the subsequent two weeks.

The finance ministry mentioned the federal government had put in place austerity measures geared toward eliminating non-essential expenditure and had been specializing in vitality conservation to cut back its import invoice.

Reporting by Charlotte Greenfield, Enhancing by William Maclean

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