Pakistan’s external financing requirements have not been changed in talks with the International Monetary Fund (IMF) over bailout funds, the IMF Resident Representative in Pakistan said, denying local media reports that the Fund was seeking fresh financing.
“There is no truth to reports that the IMF is asking Pakistan to raise $8 billion in fresh financing,” Esther Pérez Ruiz said in a text message sent to Reuters on Sunday.
For the latest headlines, follow our Google News channel online or via the app.
Pérez Ruiz said that external funding requirements had not changed throughout the discussions, under a review that would unlock $1.1 billion in financing for the cash-strapped South Asian nation as part of a $6.5 billion IMF package.
A staff-level agreement on the review has been delayed since November, with nearly 100 days passed since the last staff level mission to Pakistan -- the longest such delay since at least 2008.
On Thursday, the Fund reiterated that obtaining commitments on external financing from friendly countries would be essential before the IMF approves the release of bailout funds.
The UAE, Saudi Arabia, and China came to Pakistan’s assistance in March and April with pledges that would cover some of the funding deficit.
Pakistan’s central bank reserves fell $74 mln to $4.38 billion, barely a month’s worth of imports, according to data released on Thursday.
Pakistani Finance Minister Ishaq Dar said during a seminar on Thursday that Pakistan would not default, with or without the IMF, and that the country could not afford to take any additional harsh measures to accommodate the IMF.
Pakistan has reversed course on implementing a fuel cross-subsidy that had raised concerns at the IMF.
IMF Resident Representative Pérez Ruiz said that Pakistani authorities committed to the IMF during last month’s spring
meetings that they would not introduce the cross-subsidy scheme in fiscal year 2023 or beyond. She said the scheme was “typically regressive and prone to abuse.”
“The announced fuel cross-subsidy scheme raises new quasi-fiscal and balance of payments risks, and it is amenable
to fraud,” she said, in a separate text message to Reuters.
IMF to discuss Pakistan’s budget plans as bailout funding lifeline nearsThe International Monetary Fund (IMF) is preparing to discuss Pakistan’s budget plans for the coming financial year, as part of a long-awaited bailout ... Economy
UAE confirms to IMF support of $1 bln to Pakistan: Finance ministerThe United Arab Emirates has confirmed to the International Monetary Fund that it will provide support of $1 billion to Pakistan, the South Asian ... Gulf
Pakistan moves closer to IMF loan after Saudi Arabia commits $2 billion loanPakistan moved a step closer to an International Monetary Fund bailout after Saudi Arabia assured the global lender it will provide a $2 billion loan ... Saudi Arabia
Pakistan inflation spikes as IMF standoff continuesInflation in crisis-racked Pakistan has jumped 31.5 percent according to state data published Wednesday, as Islamabad continues to stare down IMF ... World News
Pakistan will unwillingly accept strict conditions of IMF deal: PM SharifPakistan has to unwillingly accept the strict conditions of a deal with the International Monetary Fund (IMF) to provide a lifeline for an economy in ... World News
IMF says ‘considerable progress’ made in Pakistan talksThe IMF on Friday said progress was made during crisis talks with cash-strapped Pakistan, but no deal was announced as their delegation wrapped up an ... Economy
Pakistan says agrees to IMF bailout conditionsPakistan has agreed with the International Monetary Fund on the conditions to release about $1.1 billion in critical funding, Finance Minister Ishaq ... World News
Pakistan rupee weakens to new record low after arrest of former PM Imran KhanThe Pakistani rupee weakened 1.3 percent to a new record low of 288.5 against the US dollar on Wednesday, a day after former Prime Minister Imran Khan ... Economy
Pakistan consumer prices hit a record 36.4 pct in April, highest in regionPakistan consumer prices rose a record 36.4 percent in the year toApril, the highest inflation rate in South Asia, up from March’s previous record of ... Economy