IMF Gives Important Clarification On Loan Deal With Pakistan

Web Desk — The International Monetary Fund (IMF) resident representative in Islamabad says Pakistan’s external financing requirements have not been changed in talks with the IMF over bailout funds, denying local media reports that the Fund was demanding fresh financing.

Esther Pérez Ruiz, in a text message to Reuters, said there was no truth to reports that the IMF is asking Pakistan to raise $8 billion in fresh financing.

The IMF had to issue clarification after an Express Tribune (ET) report published on Saturday. The ET report quoted sources as saying that the IMF had raised the demand for additional financing from an earlier unmet condition of $6 billion to $8 billion with a view to ensuring debt repayments coming up for the May-December 2023 period.

Pérez Ruiz, on Sunday, said that requirements for external funding had not changed throughout the discussions.

The Fund, on Thursday, reiterated that a commitment on external financing from friendly countries is a must before the IMF approves the release of bailout funds.

China, United Arab Emirates (UAE and Saudi Arabia came to Pakistan’s rescue in March and April with pledges that would cover some of the funding deficit.

Ishaq Dar, minister for finance, said during a seminar that Pakistan would not default, with or without the IMF. Dar further stated that Pakistan was not willing to take any additional harsh measures on IMF demand.