International Monetary Fund welcomes commitments made by Pakistan’s friendly countries

ISLAMABAD, April 15 (SABAH):  The International Monetary Fund (IMF) has welcomed the commitments made by the Pakistan’s friendly countries helping the cash-strapped country revive the much-needed loan programme amid depleting foreign exchange reserves.

IMF Mission Chief for Pakistan Nathan Porter said that Islamabad and global lender had agreed to continue the ongoing economic policies in the recent meetings. Both sides had also agreed to arrange adequate funds to implement these policies.

He said the IMF backed the efforts being made by the Pakistani officials to secure the financial assurances from friendly states as they will help it complete the ninth review under the Extended Fund Facility (EFF).

“During the meetings between the Pakistani delegation and IMF staff and management, there was agreement on the need to maintain strong policies and secure sufficient financing to support the authorities’ implementation efforts,” Porter said.

He added that the Fund looks forward to obtaining the necessary financing assurances as soon as possible to pave the way for the successful completion of the ninth review.

It is worth mentioning here that the IMF has asked Pakistan to arrange $6 billion in external financing — a sum that the struggling $350 billion economy needed from now till June to avoid default.

It should be noted that the $6 billion financing gap had been worked out on the assumption that the current account deficit would remain around $7 billion in the current fiscal year.

So far, Saudi Arabia has pledged $2 billion while UAE has committed $1 billion funds to Pakistan which reduces the now required amount to $3 billion.