WASHINGTON: The Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva has said that Pakistan’s debt remains manageable.
This comes after the government confirmed that it had met all requirements to receive a crucial IMF bailout, while Pakistan awaits a delayed $1.1 billion package that was originally scheduled for November, with concerns raised regarding fiscal policy adjustments.
The funds can only be released after the signing of a staff level agreement (SLA), as part of a $6.5 billion bailout package approved by the IMF in 2019.
Analysts suggest this bailout is crucial for Pakistan to avoid defaulting on external payment obligations. Pakistan’s finance ministry also confirmed that the deputy managing director of the IMF, Antoinette Moniso Sayeh, was optimistic about signing the staff level agreement soon.
Talking to reporters, Georgieva stated that the lender has been working with Pakistani authorities within the context of the current program to ensure that the country has the necessary policy framework to avoid unsustainable debt levels.
She also said that the IMF is in discussions with friendly countries of Pakistan to provide financial assurances to complete the program, expressing hope that with everyone’s goodwill and the implementation of what has been agreed upon by Pakistani authorities, the current program can be completed successfully, and Pakistan can avoid reaching unsustainable debt positions faced by other countries such as Sri Lanka.
