IMF Engages With Pakistan Despite Current Situation

The International Monetary Fund (IMF) is working with Pakistan to get money and policy assurances for the 9th review of the $6.7 billion loan approved in 2019, a spokeswoman told Bloomberg earlier today.

Pakistan has not indicated a desire to halt programme distribution negotiations, according to the crisis lender. The agency’s representative said in an email that Islamabad will not introduce its fuel cross-subsidy scheme in 2023-24 and beyond.

The Fund didn’t comment on Imran Khan’s detention.

On Tuesday, Minister of State for Petroleum Musadik Malik stated that the government will resolve IMF concerns before implementing its new fuel subsidy scheme. “We want to make sure that if we move forward, we take care of their (IMF) concerns and make sure that they completely understand what we are trying to do and why,” he added.

The lender’s words today mitigated fears that arose after a Bloomberg article said Pakistan could fail without new funding. The country’s massive debt amortisation versus fragile reserves means default is near.

With the programme ending in June 2023, the IMF has $2.6 billion to disburse.

The IMF may be warier of reopening the bailout programme if demonstrators remain on the streets since Tuesday. Pakistan’s and its investors’ volatile politics could hamper talks with the lender.

 

 

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