ISLAMABAD: The International Monetary Fund (IMF) said that Pakistan has made "substantial progress" toward meeting policy commitments needed to unlock loans the country needs to avoid default, Bloomberg News reported recently.

The international lender said Pakistan has a few more tasks before it can unlock a $6.5 billion loan to avoid a default, putting pressure on the government to secure assurances from countries that have promised financing support. Pakistan is now the only South Asian country that’s yet to secure a bailout from the multilateral lender as Sri Lanka clinched financing this week and Bangladesh pushes on with carrying out IMF-mandated reforms.

“A staff-level agreement will follow once the few remaining points are closed,” the report quoted Esther Perez Ruiz, the IMF’s resident representative for Pakistan, as saying. “Ensuring there is sufficient financing to support the authorities in the implementation of their policy agenda is the paramount priority.” Finance Minister Ishaq Dar said last week that the IMF wanted to see countries finalise commitments they’ve made to help Pakistan shore up its funds before signing off on the bailout package.

Pakistan needs to repay about $3 billion of debt by June, while $4 billion is expected to be rolled over. The country has taken tough measures including increasing taxes and energy prices, and allowing its currency to weaken to restart a $6.5 billion IMF loan package.

Published in The Daily National Courier, March, 22 2023

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