Economic Crisis: Despite all efforts, Pakistan fails to woo IMF

The development comes as negotiations, which took place from Jan 31 to February 9, with the global lender — which was visiting Pakistan at the government's request — and the local authorities concluded in Islamabad.

Finance Minister Ishaq Dar was due to hold a press conference for the much-awaited resumption of the programme, however, no official announcement was made by the financial czar.

In a statement released late on Thursday night, Secretary of Finance Hamed Sheikh, without giving further details, announced that "an agreement has already been struck with the IMF on prerequisite measures”.

At the same time, the secretary stressed that the international creditor assured Pakistani authorities of striking a staff-level pact in the coming days and the "agreement for releasing the loan will also be signed soon".

"All matters between the IMF and Pakistan have been agreed upon," Sheikh said — noting that the Washington-based lender's mission has also assessed sources of foreign inflows.

He further added that the IMF mission, headed by Nathan Porter, would release a detailed statement later after approval from Washington.

The IMF's loan is critical for the country's $350 billion economy as the State Bank of Pakistan (SBP)-held foreign exchange reserves have fallen to $2.91 billion — enough to provide an import cover of 0.58 months, media reports said.

Originally signed by former prime minister Imran Khan in 2019, the $6 billion bailout package repeatedly stalled after his government reneged on subsidy agreements and failed on its tax collection commitments outlined in the deal amid a yawning budget deficit, Geo news reports.

The incumbent coalition government resumed the programme, and in August, it received around $1.17 billion under the seventh and eighth reviews of the Extended Fund Facility (EFF).

(With UNI inputs)