Islamabad, 27 May 2023 (GNP): In an effort to swiftly conclude a staff-level agreement regarding an IMF loan, Pakistan has once again reached out to the United States, seeking its support in urging the International Monetary Fund (IMF).
Pakistan is currently engaged in critical negotiations with the IMF to revive the stalled Extended Fund Facility (EFF) program
However, optimism for a favorable resolution is dwindling as the $6.5 billion program’s June 30 deadline approaches.
According to a news report, US Ambassador Donald Blome and Finance Minister Ishaq Dar extensively discussed the issue of the IMF loan during their meeting.
Finance Minister Dar highlighted that the entire initiative would be in jeopardy if IMF maintained its policy of inaction.
“If the policy of no action continued on the part of the IMF, the program will end in smoke,” Dar claimed.
Concurrently, Ambassador Blome voiced a wish for fewer taxes to be imposed on particular US companies doing business in Pakistan, notably those in the beverage industry.
Also Read: COMSTECH organized training on management of health emergencies and crisis
Minister Dar and the Special Assistant to the Prime Minister assured a thorough review of the proposal during budget-making.
The Ministry of Finance released a statement on Friday, highlighting the meeting between Ambassador Blome and Finance Minister Dar.
They discussed ways to improve bilateral economic, investment, and trade relationships as well as Pakistan’s economic goals and plans for overcoming current economic obstacles, according to the statement.
H.E. Mr.Donald Blome, Ambassador of the United States of America to Pakistan called on Finance Minister Senator Mohammad Ishaq Dar and exchanged views on matters of mutual interest and enhancing bilateral economic, investment and trade relations between the two countries.🇺🇸🇵🇰 pic.twitter.com/pwVAB9v16i
— Ministry of Finance, Government of Pakistan (@Financegovpk) May 26, 2023
Minister Dar apprised the US envoy of the government’s pragmatic plans regarding revenues and expenditures to fulfill national and international financial obligations.
Also Read: Pakistan Appoints Asif Durrani as Special Envoy for Afghanistan
According to the statement: “The finance minister also informed the envoy about the ongoing IMF program and assured the dedication of the government to complete the program.”
Pakistan seeks Chinese support to avert debt default
Pakistan is also struggling with meeting other repayment deadlines, with approximately $3.7 billion in foreign debt due this month and in June.
At the moment, Pakistan has a mere $4.3 billion in foreign exchange reserves.
Pakistan is looking at ways to roll over more than $2 billion in debt payable to China next month in order to reduce imminent default concerns.
According to senior authorities, China has promised to help Pakistan fulfill the two important debt repayments in June, which total $2.3 billion.
“The refinancing of the commercial loans worth $1.3 billion and a Chinese government loan of $1 billion would help Pakistan avert immediate default,” the officials claimed.
