The deadlock persists between Pakistan and IMF as the two sides have failed to reach the staff-level agreement to unlock the USD 1.1 billion loan tranche.
The deadlock persists between Pakistan and International Monetary Fund as after 10 days of “tough” talks both the sides have failed to reach the staff-level agreement to unlock the USD 1.1 billion loan tranche, as per the News International report.
This development comes in connection with the negotiations, which took place between IMF and Pakistan from January 31 to February 9, concluded in Islamabad. The IMF’s mission had arrived in Islamabad to hold talks with Pakistani authorities.
Deadlock between Pakistan government & IMF?
Pakistan Finance Minister Ishaq Dar was due to hold a press conference for the resumption of the programme. However, he has not made an official announcement regarding the matter
Pakistan’s Secretary of Finance Hamed Sheikh released a statement late Thursday night without revealing details stating “an agreement has already been struck with the IMF on prerequisite measures”.
Notably, the IMF’s loan is critical for Pakistan’s economy as the State Bank of Pakistan (SBP)-held foreign exchange reserves have dropped to USD 2.91 billion.
Pakistan entered a USD 6 billion International Monetary Fund (IMF) programme during Imran Khan’s government in 2019, which was increased to USD 7 billion last year. The bailout package has been repeatedly stalled after Khan regime reneged on subsidy agreements and failed on its tax collection commitments outlined in the deal.
Pakistan PM Shehbaz Sharif-led government resumed the programmed and received around USD 1.17 billion in August. The programme’s ninth review is currently pending with talks being held between IMF officials and the government for the release of USD 1.18 billion