Skip to main content
Best News Website or Mobile Service
 
WAN-IFRA Digital Media Awards Worldwide
Best News Website or Mobile Service
 
Digital Media Awards Worldwide
Hamburger Menu

Advertisement

Advertisement

Business

As IMF funding delayed, Pakistan expects US$3 billion from friendly country

As IMF funding delayed, Pakistan expects US$3 billion from friendly country

Pakistan's Finance Minister Ishaq Dar speaks during a news conference to announce the economic survey of fiscal year 2016-2017, in Islamabad, Pakistan, May 25, 2017. REUTERS/Faisal Mahmood

ISLAMABAD: Pakistan expects to secure US$3 billion in external financing from a friendly country in two weeks, its finance minister said on Friday (Dec 2) as the South Asian country awaits IMF funding.

An International Monetary Fund (IMF) review for the release of its next tranche of funding has been pending since September, leaving Pakistan in dire need of external financing.

Pakistan's finance minister, Ishaq Dar, said on Friday in an interview with Geo News TV that all targets for the IMF's ninth review had been completed, adding that withholding a tranche despite that would not make sense.

Pakistan secured a US$6 billion bailout in 2019 under an Extended Fund Facility (EFF), that was topped up with another US$1 billion earlier this year.

"We continue to engage in discussions with the government over policies to address the humanitarian and rehabilitation needs of the floods while promoting macroeconomic and fiscal sustainability," the IMF's resident representative in Pakistan, Esther Perez Ruiz, said in a statement.

Dar said Pakistan's foreign reserves, which have dropped to US$7.5 billion, will be shored up with a US$3 billion financing from a friendly country in the next two weeks.

That is hardly enough for a month of imports for Pakistan, which has been facing a widening current account deficit and a balance of payments crisis.

"All the requirements for the ninth (IMF) review are completed," Dar said, adding that the international lender was "behaving abnormal" by not completing the review.

Pakistan will make alternate arrangements in case of any delay from the IMF, he said.

"If the money doesn't come, we will manage, no problem," he added.

Source: Reuters

Advertisement

Also worth reading

Advertisement