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PM Shehbaz in last-ditch effort to rescue IMF bailout program

MM News Staff by MM News Staff
June 20, 2023

ISLAMABAD: In light of significant differences between Islamabad and the International Monetary Fund over budget calculations, Prime Minister Shehbaz Sharif on Monday made contact with almost a dozen major international players to inform them of Pakistan’s efforts to resurrect the $6.5 billion bailout program.

The prime minister held a background meeting with the ambassadors from the Western, European and Asian countries, The Express Tribune reported on Tuesday. The meeting took place just 11 days before the expiry of the current IMF program, which could also be the last such interaction.

According to the report, the prime minister informed the foreign ambassadors of the efforts he and Finance Minister Ishaq Dar personally made over the course of the previous several months.

The prime minister once more expressed the government’s desire to receive at least the $1.2 billion tranche of the $2.6 billion that is contingent upon the conclusion of the ongoing 9th review.

The government had invited the ambassadors of the United States, the United Kingdom, France, Germany, the European Union, Japan, China, Saudi Arabia, Qatar and the United Arab Emirates, the paper said.

Another meeting participant reported that some ambassadors asked the government for clarifications while assuring them that they would inform their capitals of Pakistan’s position. Additionally, the ambassadors communicate with IMF personnel.

The report claimed that the economic team counted on the efforts that the finance minister first made to invite the IMF team for review talks in October last year, but the IMF took three months to respond to the invite. The foreign diplomats were apprised that in February, the country undertook all the agreed steps, including Rs170 billion worth mini-budget, increase in electricity and gas tariffs, increase in interest rates and leaving the exchange rate at the market forces, according to the officials.

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