Pakistan, IMF Loan agreement again Delayed

Pakistan, IMF Loan agreement again Delayed

Despite all the measures taken by Pakistan and assurance from friendly countries, International Monetary Fund (IMF) is demanding more from Pakistan. The international organization is still showing lack of confidence to unlock loan programme.

In order to lock the bailout package, IMF asked Pakistan to present a repayment of $3.7 billion loan in June as well as need to show a stronger support from friendly countries in terms of loan commitment.

Read more | IMF conditions in Upcoming Budget

Pakistan took all the measures from tightening the budget to ask friendly countries for support. UAE, China and Saudi Arabia showed their brotherly relationship with Pakistan and promised for support but it seems like IMF is still not satisfied with all this.

Ministry of Finance also imposed Rs 170 billion in taxes through mini-budget in order to secure a staff-level agreement with International Monetary Fund (IMF). Now IMF scheduled broad meetings but Pakistan is not included in it.

Effect on Budget-making process

As staff-level agreement with IMF is not finalized yet, it would also create problems in funding from International Financial Institutes. The government is also working on budget, and if transactions from IMF are not made, budget will be in danger.

Read more | Mini Budget presented

The meeting of Finance Secretary Hamid Yakoob in United States also remained unfruitful as International Monetary Fund gave the plan to arrange $1 billion from Commercial banks to unlock the final deal.

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