Pakistan is going to unlock IMF tranche: Ishaq Dar

ISLAMABAD, April 14 (SABAH): Federal Finance Minister Ishaq Dar has declared the United Arab Emirates (UAE) had confirmed to the International Monetary Fund (IMF) its bilateral support of $1 billion to Pakistan, which was the last condition to complete staff-level agreements with the IMF.

Taking to his official Twitter account on Friday, Ishaq Dar said that the State Bank of Pakistan was now engaged for needful documentation for taking the said deposit from UAE authorities.

Pakistan had forcefully requested the IMF to show some flexibility and sign the staff-level agreement, however, it could not get a date despite Islamabad’s growing concerns about the fallout of a worsening economic crisis.

The request was made by Ishaq Dar in a virtual meeting with Jihad Azour, the IMF’s director for the Middle East and Central Asia Department. However, the minister could not get the desired result, as the IMF once again raised the issue of petrol subsidy and possible fiscal leakages as a result of the implementation of the subsidy plan.

Both sides have shared their respective positions on the $6 billion external financing requirements — a sum that Pakistan needed from now till June to avoid default.

The IMF was informed that Saudi Arabia had given confirmation about the $2 billion lending to Pakistan and Dar had assured that the UAE would soon confirm its commitment to give $1 billion.

The two sides also discussed the progress made on the IMF programme, particularly the talks held with the IMF mission during its visit to Pakistan, and the implementation of prior actions, according to the press statement issued by the finance ministry.

During the first eight months of this fiscal year, the current account deficit remained at $3.9 billion. Dar assured the IMF that in case the Fund signed the staff-level agreement, Pakistan would arrange the $2 billion additional loan from the World Bank, the Asian Infrastructure Investment Bank and the commercial banks.