Federal Minister for Finance and Revenue Miftah Ismail said that the International Monetary Fund (IMF) has signaled easing its program conditions for Pakistan in the wake of the massive floods devastation that caused estimated losses of $30 billion.
“Prime Minister Shehbaz Sharif met IMF Managing Director Kristalina Georgieva yesterday, where he reviewed the current economic circumstances of the country in the wake of the devastation caused by flash floods and advocated for relaxing restrictions,” said the finance minister while talking to media.
The finance minister stated that the IMF “recognized our situation and has virtually said yes, but formal conversations will resume in Washington after two weeks,” after which the terms will be reduced.
IMF official had also agreed to increase the amount Pakistan would receive in the next tranche. Ismail said added, however, that a “lot of negotiations” were yet to be held with the international lender.
Ismail further said he also held meetings with World Bank officials, adding that the country would receive $2 billion from it this year.
Ismail responded that the IMF’s requirements and a lack of dollars prevented the government from intervening in the market when asked about the significant depreciation of the rupee against the dollar.
“Dollar is getting stronger versus every currency. The perception of default in Pakistan has grown, but we will never, ever default.”
This is why the dollar has increased, but he emphasized that it would stabilize over the next few days.
Last month, the combined 7th and 8th reviews of a loan facility for Pakistan were completed by the IMF Executive Board, enabling an immediate release of $1.1 billion to the country.
