ISLAMABAD: The International Monetary Fund (IMF) is in continued engagement with Pakistani authorities to facilitate a board meeting before the expiration of the financing program, according to the IMF mission chief. The current IMF program is set to conclude at the end of June 2023.
Nathan Porter, the IMF mission chief, stated in an interview with foreign media that the ongoing engagement will primarily focus on key areas such as restoring foreign exchange reserves, the approval of a Fiscal Year 2024 budget that aligns with program objectives, and securing adequate financing.
The staff-level agreement for the 9th review of the IMF program has faced several delays since November, with more than 100 days having passed since the last staff-level mission to Pakistan. Typically, a board meeting to review the program requires a prior staff-level agreement, which would unlock $1.1 billion in financing for Pakistan as part of the $6.5 billion IMF package.
Pakistan to Avoid Default: Dar
Finance Minister Ishaq Dar emphasized on Sunday that Pakistan is committed to avoiding default and will overcome the current economic crisis with or without the support of the International Monetary Fund (IMF). He further stated that foreign powers are surprised by Pakistan’s resilience in avoiding default thus far.
Dar also attributed the economic challenges to the previous government led by former Prime Minister Imran Khan, alleging that Khan’s administration squandered the $100 billion market handed over by the previous PML-N government, leading Pakistan on the brink of default.
As the expiration of the financing program approaches, the outcome of the engagement between the IMF and Pakistani authorities will play a crucial role in determining the country’s economic stability and access to essential financial assistance. The successful conclusion of a board meeting would pave the way for continued support from the IMF, while failure to reach an agreement could impact Pakistan’s financial prospects and exacerbate the economic crisis.
