IMF Deal to Go Through After External Financing from Friendly Countries is Secured

The International Monetary Fund (IMF) has ensured that all its prior conditions have been met but the bailout is still pending and getting delayed because the lender wants Pakistan to first arrange external financing from friendly countries.

Minister of State for Finance and Revenue Aisha Ghaus Pasha told reporters on Wednesday that China has already sent some cash to Islamabad. Meanwhile, Saudi Arabia has indicated cooperation and discussions are currently underway with the United Arab Emirates and Qatar.

This minister said the IMF deal will be signed as soon as assurances of financing from friendly countries arrive.

Pasha last week acknowledged the difficulties faced by the country but added that the present government had restored the IMF program. The lender wants no leaf unturned and the government has complied with everything thrown its way.

Pertinently, Pakistan last month claimed to have received $2 billion in assurances from Saudi Arabia and $1 billion from the United Arab Emirates (UAE), leaving a $3 billion gap. Finance Minister Ishaq Dar called Qatar’s finance minister in March to seek his country’s assistance in closing the financing gap.

In August of last year, the directors of regional countries China, Qatar, Saudi Arabia, and the UAE assured the IMF board that they would provide $4 billion in additional financing. However, this did not occur otherwise it would have been reflected in the weekly SBP forex reviews.