According to Pakistan’s finance minister Ishaq Dar, the International Monetary Fund (IMF) has requested that “friendly” nations fulfill their funding obligations before approving a $6.5 billion bailout package. Due to this requirement, there have been delays in finalizing negotiations between Pakistan and the IMF.
Some countries have pledged to support Pakistan during the IMF’s review, the country’s finance minister said adding, IMF “is asking they should actually complete and materialize those commitments.”
Pakistan’s government has completed all IMF demands, the minister said as the country has taken tough measures including raising taxes, energy prices and interest rates. Although the finance minister did not name the countries who made commitments to Pakistan, Saudi Arabia, the United Arab Emirates, Qatar and China have helped the country in recent months by rolling over debts and giving dollar deposits and oil on credit.
Early this month, the Industrial & Commercial Bank of China Ltd. released $500 million to Pakistan, marking the first installment of a $1.3 billion loan.
This also comes amid political uncertainty in the country as the popularity of the government led by prime Minister Shehbaz Sharif has fallen as they blame the premier for the economic crisis while supporting Imran Khan. Although, the IMF has not indicated that political uncertainty is causing any delay in reviving the bailout. Shehbaz Sharif said earlier this week, “We have accepted all the conditions, the very tough conditions set by the IMF.”
