Pakistan’s Finance Minister Ishaq Dar Seeks US Help in IMF Deal

Thu Apr 06 2023
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ISLAMABAD: Pakistan’s Finance Minister Mohammad Ishaq Dar has requested the United States (US) ambassador to play a role in the International Monetary Fund (IMF) deal. Ishaq Dar discussed the IMF agreement with US Ambassador Donald Blome and informed him of the current economic situation of the country.

During the meeting, Dar informed the US ambassador about the $2 billion financing from Saudi Arabia and said that talks on $1 billion financing were in process. The US Ambassador Donald Blome assured Ishaq Dar of increasing bilateral cooperation and the IMF deal.

Earlier, the IMF confirmed that it had received confirmation from Saudi Arabia on $2 billion in additional deposits to Pakistan. Pakistan has been negotiating with the IMF since the end of January for the release of a $1.1 billion tranche from a $6.5 billion bailout package agreed upon in 2019.

To unlock the bailout package, the government has cut back on subsidies, removed an artificial cap on the currency exchange rate, imposed new taxes and raised fuel prices.

A private news channel reported that sources within the finance ministry confirmed that the IMF had informed the Pakistani authorities about the development.

IMF conditions to unlock bailout package

It may be noted that the IMF had demanded that the Pakistani government get a written guarantee from friendly countries for the deposit. Saudi Arabia and the UAE had sought some time to assure the IMF regarding the deposit.

The request by the finance minister to the US ambassador comes amid efforts by the Pakistani government to secure funding from various sources to stabilize the country’s economy.

The US could play a significant role in helping Pakistan reach a deal with the IMF, as it has significant influence over the global financial institution.

The talks between Pakistan and the IMF have been ongoing, and the government is hopeful that a deal will be reached soon.

The IMF package is crucial for Pakistan’s economic stability, as it will help the country address its balance of payments crisis and improve its fiscal deficit.

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