Friday, August 12, 2022

Pakistan seeks US help to revive IMF program

Pakistan has sought help from the United States to revive the IMF loan program, as the International Monetary Fund (IMF) has not yet agreed to a staff-level agreement, despite stringent measures taken by the government.

Yesterday, the government’s economic team met with US Ambassador to Pakistan Donald Bloom and asked for his help in this regard. During the meeting, the US Ambassador was briefed on the steps being taken for the revival of the IMF program and economic stabilization, although the Ministry of Finance has not yet officially commented on the matter.

The Pakistani delegation that met the US Ambassador included Federal Minister for Finance Muftah Ismail and Minister of State for Finance Ayesha Ghous Pasha.

It should be noted that the United States is the largest partner in the IMF and it has been assisting Pakistan in the past in its funding programs. In this meeting, Pakistani officials told the US Ambassador that the government Measures of financial stability equivalent to 2.2% of its GDP.

There have been three rounds so far between Pakistan and the IMF to revive the loan program, two of which have been with the current government. In addition, there have been several online contacts, but sources say the IMF As of Thursday evening, the IMF had not even shared a draft Memorandum of Understanding (MoU) with Pakistan regarding its economic and fiscal policies, which is the basis for staff-level negotiations, without which the IMF would not sign any agreement.

The IMF’s program with Pakistan has been suspended since last March because the previous government had not implemented the agreement reached with the international body. His stance on payments to PIPs comes after the World Bank said last year that payments made to Chinese IPPs should be extended to concessions to non-C-pack projects. ۔

The International Monetary Fund (IMF) had yesterday issued a statement quoting its resident representative, Esther Perez, denouncing the allegations as “untrue” and said the IMF had not insisted on holding any talks with Pakistan on the C-Pac IPPs agreement. On the contrary, the World Health Organization (WHO) says it supports the government’s multifaceted efforts to revive the energy sector, whose stakeholders include the government, power producers and power consumers.



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