The International Monetary Fund (IMF) said on Thursday that Pakistan needs significant additional financing for the successful completion of the stalled ninth review of the IMF’s bailout program.
In a press conference, IMF spokeswoman Julie Kozack said that obtaining commitments of “significant additional financing” is essential before the IMF approves the release of pending bailout funds.
Kozack said that financing already committed by Pakistan’s external partners was welcomed. She was referring to pledges by China, Saudi Arabia, and the United Arab Emirates in recent weeks that would cover some of the funding deficit.
Earlier in the day, while addressing an event in Islamabad, Finance Minister Ishaq Dar said that Pakistan would not default even if the IMF program is not revived.
With debt payments of $3.7 billion on the horizon, the reserves held by the State Bank of Pakistan (SBP) have dropped to just $4.38 billion. The finance minister said today that Pakistan will fulfill all upcoming debt obligations on time.
Earlier in the week, the Ministry of Finance also assured that the debt repayment should not be a cause of concern as arrangements have been made for the rollover/repayment of this debt.
