ISLAMABAD: The International Monetary Fund (IMF) is reported to have asked Pakistan to arrange $8 billion in fresh loans to support external debt repayments over the next seven months in order to successfully complete the long-stalled ninth review bailout package.
This ‘do more’ demand came despite receiving confirmation from Saudi Arabia and the United Arab Emirates (UAE). The delay in the agreement has lasted for nearly 100 days since the last staff-level mission to Pakistan.
Media reports quoted sources suggesting that the IMF has requested that Pakistan arranges $8.4 billion in fresh loans, with the aim of ensuring debt repayments between May and December 2023.
Additionally, the IMF has asked Pakistan to secure $6 billion in external financing by June 2023 in order to avoid default. Due to the delay in arranging these funds, the $1.2 billion 9th programme review remains incomplete.
It may be recalled that on Thursday, Finance Minister Ishaq Dar stated that Pakistan will no longer make tough decisions on the demand of the International Monetary Fund (IMF). He made it clear that it is up to the IMF to sign a staff-level agreement or not. The government has already implemented pre-conditions set by the IMF but will no longer make tough decisions on its demand.
