Pakistan seeks US support to reach an agreement with the IMF
According to reports, Pakistan is seeking the support of the United States to reach an agreement with the International Monetary Fund (IMF).
According to the story in The News, the IMF demanded a guarantee from Pakistan that Saudi Arabia, the United Arab Emirates, Qatar and other multilateral lending institutions will cover the external financial deficit of 6-7 billion dollars by June 2023.
Unable to convince the IMF, Pakistan seeks the support of the United States to reach an agreement.
ASKED FOR HELP
The sources claimed that Ishak Dar, the Minister of Revenue and Finance, contacted the US diplomats in Islamabad and requested assistance regarding the issue.
US Ambassador to Islamabad Donald Blome told an event in the capital, noting that Washington is trying to find solutions to solve Islamabad’s economic problems.
Blome noted that reaching an agreement with the IMF is also part of these efforts.
FOREIGN RESERVES 4.3 BILLION DOLLARS
Negotiations continue between Pakistan and the IMF on the release of a loan of 1.17 billion dollars.
The IMF demands that Pakistan increase its tax base, end privileges in the export sector and raise energy prices.
With a nominal gross domestic product of $350 billion, Pakistan has a foreign exchange reserve of $4.3 billion after central bank credit support from two Chinese banks.
AGREEMENT WITH THE IMF IN 2019
Pakistan has agreed with the IMF on a $6 billion economic rescue package, which is scheduled to be paid in 39 months in 2019.
In July 2022, it was discussed again and the IMF announced that the total amount of the loan was increased from 6 billion dollars to 7 billion dollars.
Under the deal reached, the IMF stated that it would release a $1.17 billion loan to Pakistan if conditions were met.
EXTERNAL DEBT 274 BILLION DOLLARS
In addition to the political crises and rising inflation, the devastating floods and power shortages experienced last year have further increased the pressure on the country’s economy.
Pakistan’s national debt is around $274 billion, which corresponds to around 80 percent of its gross domestic product. This makes the country vulnerable to economic shocks. (AA)
Source: Sozcu
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
