Head of IMF, Kristelna Georgieva, has said that Pakistan has not reached default and it is hoped that Pakistan will not reach default, Pakistan will avoid a situation like Sri Lanka and Ghana.
On the other hand, Finance Minister Ishaq has told head of IMF after a virtual meeting that UAE authorities have assured IMF of one billion Pakistani dollars.
Addressing IMF World Bank meeting in Washington, in response to question of well-known Pakistani journalist Ali Khizr, Managing Director of IMF, Kristelina Georgieva, said that it is hoped that Pakistan will successfully complete its current program and extend it to Sri Lanka and Ghana. Such a situation will not have to be faced.
IMF’s MD comment on my question on the possible debt restructuring of Pakistan given the climate challenges the country is facing
She is hopeful that Pakistan won’t go through the path of Sri Lanka or Ghana and will complete the current programme @KGeorgieva#IMFMeetings pic.twitter.com/ts7dGxqicu
— Ali khizar (@AliKhizar) April 13, 2023
Asked about the risk of Pakistan defaulting, MDIMF said that Pakistan has not reached that point yet and it is better not to. There is no doubt that Pakistan faces climate challenges but the steps taken by the Pakistani authorities. We are hopeful that we will complete this program successfully, at this time we are talking about securing financial assurances from Pakistan.
He said that Pakistan can complete the program by implementing the issues agreed upon, it is hoped that it will be possible with the goodwill of all of us, Pakistan will remain on the front line of climate change, the future sustainability of agriculture in Pakistan. But one has to think, Pakistan is working hard together with the authorities, Pakistan should create such a policy framework that avoids economic risks.
Meanwhile, Finance Minister Ishaq Dar, informing about the progress of the ninth review of the IMF program, has claimed that the authorities of the United Arab Emirates have confirmed a bilateral aid of one billion dollars to the IMF for Pakistan.
IMF program — 9th Review Update:
UAE authorities have confirmed to IMF for their bilateral support of US $ One billion to Pakistan.
State Bank of Pakistan is now engaged for needful documentation for taking the said deposit from UAE authorities.
AlhamdoLilah!
— Ishaq Dar (@MIshaqDar50) April 14, 2023
He said that the State Bank of Pakistan is now preparing the necessary documents for the said deposit from the Emirati authorities.
Earlier, Federal Minister for Finance Senator Ishaq Dar attended the spring meeting of IMF/World Bank via Zoom from Islamabad yesterday along with IMF Deputy Managing Director Antoinette Moniso Seh.
Finance Minister Senator Ishaq Dar and Antoinette Moniso Seh discussed the steps taken by the Government of Pakistan regarding economic and financial policies and reforms and the implementation of pre-emptive measures for the ongoing IMF program.
Finance Minister Muhammad Ishaq Dar apprised them of the economic outlook of the country and the government’s initiatives to bring about economic stability, which is paving the way for development.
The Finance Minister further informed that all preliminaries for the ninth review under the Extended Fund Facility have been completed and the Government of Pakistan is fully committed to fulfill its commitments with the IMF. The finance minister also said that all international obligations have been met on time.
The Deputy Managing Director of the IMF appreciated the government’s policies and supported the government’s initiatives in various sectors in relation to the implementation of the advance measures agreed with the IMF. They further extended their support to continue working together and expressed confidence in signing a Staff Level Agreement very soon.