In a last-ditch attempt to get a bailout, the Pakistani PM meets with the IMF chief

In a desperate attempt to get a much-needed loan from the international lender, Pakistan’s cash-strapped government reportedly met with IMF Managing Director Kristalina Georgieva on Thursday.

In a meeting conducted in conjunction with the Paris Summit for a New Global Financial Pact, the International Monetary Fund (IMF) and crisis-ridden Pakistan shared opinions on current initiatives and cooperation, according to Radio Pakistan.

In 2019, the IMF agreed to provide Pakistan $6 billion in exchange for meeting a number of requirements.

Due to the donor’s desire that Pakistan finish all legalities, the plan was repeatedly delayed, and the final payment is still waiting.

The prime minister reminded Georgieva of their recent phone discussion from May 27, 2023, in which he discussed Pakistan’s economic prospects and the measures the country’s leadership had made to promote stability and progress.

Shehbaz further emphasised that the government of Pakistan was completely committed to upholding its commitments as outlined in its agreement with the IMF and that all previous activities for the ninth review under the Extended Fund Facility (EEF) had been completed.

The IMF’s EFF money were allocated, and the prime minister hoped they would be released as quickly as possible.

The PM said that this would improve Pakistan’s continuing efforts to stabilise its economy and provide assistance for its citizens.

The managing director of the IMF discussed the current evaluation process from her organization’s point of view. The meeting gave us a good chance to evaluate our progress in that area.

Sherry Rehman, the minister for climate change, Ayaz Sadiq, the minister for economic affairs, Marriyum Aurangzeb, and other officials were present at the meeting.

Pakistan was anticipating receiving around $1.2 billion from the IMF in October of last year as part of the EFF’s ninth review, despite reserves being at critical levels for the preceding several months. But over eight months later, that amount still hasn’t arrived, according to the Fund, who claims Pakistan can’t fulfil crucial requirements.

Pakistan’s attempts to get access to the previously signed $6 billion loan package are in a pickle since the country’s budget must please the international lender in order to guarantee the release of more bailout funds for the cash-strapped nation.

The ninth review of the project, which is nearing its end, is still in a rut, and the tenth review, which was initially planned, is all but ruled out, according to the report.

Without the fund’s active assistance, it is anticipated that Pakistan may be unable to meet its obligations for external finance.

Since many years ago, Pakistan’s economy has been in a fast slide, putting enormous pressure on the underprivileged masses via unbridled inflation and making it almost difficult for a large number of people to make ends meet.