ISLAMABAD: Coalition government shared its plan with International Monetary Fund (IMF) for securing an additional $ 3 billion to bridge financing gap as it expedites efforts to convince lender to release next loan tranche. IMF is seeking “Necessary” financing assurances at earliest to conclude talks with Pakistan on its stalled bailout, Fund’s mission chief for Pakistan, Nathan Porter confirmed last week.

IMF had asked Pakistan to arrange $ 6 billion in external financing sum that struggling $ 350 billion economy needs from now till June to avoid default. It should be noted that $ 6 billion financing gap had been worked out on assumption that current account deficit would remain around $ 7 billion in current fiscal year. IMF welcomed “Recent announcement of important financial support to Pakistan from key bilateral partners”, indirectly confirming United Arab Emirates and Saudi Arabia’s commitments. But these commitments are short of Pakistan’s requirements.

According to sources, Islamabad has informed Washington-based lender about its plan to secure $ 450 million worth second Resilient Institutions for Sustainable Economy (RISE-II) budget support loan.

Plans to get $ 1 billion from Asian Infrastructure Investment Bank (AIIB) and other commercial banks were also shared with Fund officials along with plans to materialise pledges secured at Geneva moot.

Programme loans from other multilateral agencies await completion of IMF review, central bank governor Jameel Ahmad told investors in Washington at spring meetings of lender and World Bank.

Ishaq Dar-led Ministry of Finance is now awaiting response from IMF officials regarding next step.

Published in The Daily National Courier, April, 19 2023

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