Pakistan seeks release of all $2.6 billion stalled IMF funds

Finance Minister Ishaq Dar has said that the government is looking for a mechanism to receive all $2.6 billion stalled funds from the International Monetary Fund (IMF).

Speaking on Geo News' Capital Talk programme on Tuesday, he said that the nation will soon hear “good news” regarding stalled bailout package as the “next one or two days are important”.

“We are trying our best to complete the 9th [IMF] review and the nation will receive good news soon,” the financial czar added.

Islamabad has been waiting for a deal after taking policy and fiscal tightening decisions required by the Washington-based lender for the disbursal of $1.1 billion under the lender's ninth review of a $6.5-billion Extended Fund Facility agreed in 2019.

Prime Minister Shehbaz Sharif's said in a statement earlier in the day that he hoped consensus over the IMF programme's points "will lead to a decision in a day or two."

The statement from the Prime Minister's Office added that PM Shehbaz spoke to IMF Managing Director Kristalina Georgieva about the country's bailout funds, stalled since November.

The two had also met in Paris on June 22.

With the bailout programme set to expire on June 30, the federal government has also revised its FY24 budget and hiked policy rates to 22% in its desperation to clinch the deal, the key to unlocking other external financings for the cash-strapped nation.

Dar said that the IMF had demanded that the key policy rate be raised to 22% and that the review "will be done."

He said the previous PTI-led government violated the IMF agreement and emphasised the need for the charter of economy to steer the country of out of the economic crisis.

“We all should happily give sacrifices for the country,” Dar said adding that the country is facing a challenging situation.

The IMF funds subject to approval by its board promise respite for Pakistan, which is battling its worst economic meltdown, with an acute balance of payments crisis and falling reserves of foreign exchange.

With additional input from Reuters