Cash-Strapped Pakistan Seeks Bailout Package: PM Shehbaz Sharif Makes Fourth Call to IMF Managing Director in Six Days Seeking Release of Stalled Loan
Pakistan Prime Minister Shehbaz Sharif on Tuesday made his fourth contact with International Monetary Fund (IMF) Managing Director Kristalina Georgieva in six days, as the cash-strapped nation scrambles to revive a stalled bailout programme, media reports said.
Islamabad, June 27: Pakistan Prime Minister Shehbaz Sharif on Tuesday made his fourth contact with International Monetary Fund (IMF) Managing Director Kristalina Georgieva in six days, as the cash-strapped nation scrambles to revive a stalled bailout programme, media reports said.
Rating agencies and economists fear that the $350 billion Pakistan economy could default on its foreign debt obligations if it fails to secure the $1.1 loan tranche of the Extended Fund Facility (EFF) agreed in 2019 which is expiring on June 30, The News reported. Pakistan has been trying to unlock the loan programme stalled since November. Chinese Debt Trap: Pakistan Owes 30% of Its Foreign Debt to China, Says IMF.
The fourth contact was made when the Prime Minister spoke to the IMF chief over the phone after meeting her thrice -- from Thursday to Saturday -- on the sidelines of the New Global Financial Pact summit held in Paris. The PM's Office released a statement that the IMF chief and the prime minister discussed matters related to the stalled bailout programme, The News reported.
On the call, the IMF chief acknowledged Finance Minister Ishaq Dar and his team's efforts for attempting to revive the loan -- after policy matters were discussed in Paris. The premier expressed hope that coordination on the points of the bailout programme would lead to a decision from the Washington-based lender in a day or two. Debt Trap Diplomacy of China on Sri Lanka & Pakistan Has Now Evolved into a Full-blown ... - Latest Tweet by ANI.
"The prime minister also reiterated his determination to achieve the goals of improving the economic situation through joint efforts," the statement read. The South Asian nation is going through its worst economic crisis amid record inflation and interest rates, but it has seen prospects for its IMF loan take a positive turn before it expires at the end of the week.
In a dramatic final attempt to appease the lender, the nation agreed to raise taxes by $750 million and cut spending in its annual budget over the weekend, The News reported.
(The above story first appeared on LatestLY on Jun 27, 2023 06:07 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).