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ISLAMABAD: Pakistani Prime Minister Shehbaz Sharif on Tuesday called the Managing Director of the International Monetary Fund Kristalina Georgieva For the fourth time in a week, the head of the multilateral bank has urged the release of funds for his cash-starved country within a day or two to save it from possible default.
The ninth review of Pakistan by the International Monetary Fund under the 2019 Extended Fund Facility (EFF) to release $1.2 billion — part of a larger $6.7 billion bailout package — has been pending since October 2022, with just a few days until the program expires. On June 30th.
Rating agencies and economists warn that Pakistan could default on foreign debt if it fails to secure a $1.2 billion loan.
As the deadline for the program approached, Sharif held back-to-back meetings with Georgieva In Paris last week.
The Prime Minister’s Office issued a statement after Tuesday’s call, referring to the Paris meetings and praising Finance Minister Isaac Dar’s efforts to complete the IMF program.
According to the statement, PM Shahbaz He hoped a decision would be made by the IMF within a day or two. “The prime minister affirmed his determination to achieve the goals of improving the economic situation through joint efforts,” the statement said.
Earlier this month, the International Monetary Fund raised several objections to Pakistan’s budget for the 2023-24 fiscal year starting next month, saying some of the measures were against agreed terms. Pakistan responded last week with several adjustments, including fiscal tightening measures dictated by the International Monetary Fund to secure funds.
The changes include Rs 21,500 crore in new taxes – including an increase in petroleum tax from Rs 50 to Rs 60 per liter – spending cuts of Rs 8,500 crore and a host of subsidy cuts.
A senior finance ministry official said all “concerns” had been addressed with the International Monetary Fund hours before the budget was approved. He is now hoping for approval from the IMF’s executive board and for the funds to be released.
The ninth review of Pakistan by the International Monetary Fund under the 2019 Extended Fund Facility (EFF) to release $1.2 billion — part of a larger $6.7 billion bailout package — has been pending since October 2022, with just a few days until the program expires. On June 30th.
Rating agencies and economists warn that Pakistan could default on foreign debt if it fails to secure a $1.2 billion loan.
As the deadline for the program approached, Sharif held back-to-back meetings with Georgieva In Paris last week.
The Prime Minister’s Office issued a statement after Tuesday’s call, referring to the Paris meetings and praising Finance Minister Isaac Dar’s efforts to complete the IMF program.
According to the statement, PM Shahbaz He hoped a decision would be made by the IMF within a day or two. “The prime minister affirmed his determination to achieve the goals of improving the economic situation through joint efforts,” the statement said.
Earlier this month, the International Monetary Fund raised several objections to Pakistan’s budget for the 2023-24 fiscal year starting next month, saying some of the measures were against agreed terms. Pakistan responded last week with several adjustments, including fiscal tightening measures dictated by the International Monetary Fund to secure funds.
The changes include Rs 21,500 crore in new taxes – including an increase in petroleum tax from Rs 50 to Rs 60 per liter – spending cuts of Rs 8,500 crore and a host of subsidy cuts.
A senior finance ministry official said all “concerns” had been addressed with the International Monetary Fund hours before the budget was approved. He is now hoping for approval from the IMF’s executive board and for the funds to be released.
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