The Chief of Army Staff, General Qamar Javed Bajwa, has requested assistance from Washington in achieving an early transfer of funds from the International Monetary Fund in order to help stabilize Pakistan's shrinking economy. Deputy Secretary of State Wendy Sherman, according to security sources, spoke with the army chief earlier this week. It is stated that the army chief made a plea to the White House and Treasury Department to get the IMF to immediately supply the almost $1.2 billion that the country is slated to receive under a reopened loan program. "Staff-level approval" for the loan was granted by the International Monetary Fund (IMF) on July 13. IMF Executive Board clearance is required before the transaction can be completed as part of Pakistan's $6 billion Extended Fund Facility. The International Monetary Fund (IMF) will be on vacation for the next three weeks, and its board will not meet until late August at the earliest. According to an IMF official wh
Due to the default risk, the IMF seeks assurance of a new condition for Saudi Arabia's $4 billion investment in Pakistan.
Due to the default risk, the IMF seeks assurance of a new condition for Saudi Arabia's $4 billion investment in Pakistan.
According to News, International Monetary Fund (IMF) is attempting to examine Saudi Arabia's commitment to supporting Pakistan before disbursing further cash to the South Asian country.
Furthermore, knowledgeable sources, that the IMF wants to guarantee that Saudi Arabia provides up to $4 billion in finance to Pakistan to ensure that Islamabad does not face a liquidity vacuum following the IMF loan.
It would includes special drawing rights, as per sources.
It is crucial matter as the IMF needs to lend Pakistan $1.2 billion, it would not be sufficient for Prime Minister, Shahbaz Sharif’s to avoid debt default, confirmed by sources.
According to projections, Pakistan would require at least $41 billion in debt payments and foreign exchange reserves over the next 12 months.
It further said that if there is a risk of default, the IMF's board of directors may refuse to sanction the disbursement of funding.
Earlier that day, on July 14, the IMF and Pakistan achieved a staff-level agreement for the release of US$1.17 billion under the combined 7th and 8th reviews of Pakistan's Extended Fund Facility (EFF).
According to a Fund release, the agreement is subject to ratification by the IMF's Executive Board.
Furthermore, it has been stated that the IMF board would consider extending the EFF through June 2023 in order to boost program execution and meet increased funding needs in 2023, as well as to complete extra financing.
Furthermore, the availability to SDR 720 million will increase the total amount under EFF to almost US$ 7 billion.
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