ISLAMABAD, May 20 (DNA): The federal government has rejected the media
reports stating the delay in signing the IMF deal is due to the lender
seeking assurances from the Ministry of Finance that the funds will not
be used for political purposes.
According to a private news channel, the government clarified that the
news is false and unfounded as IMF has never raised any such concern
with the government nor any funds can be utilized for any purpose
without the approval of the Parliament through the budget.
The development comes days after the IMF reiterated that it was working
with Pakistani authorities to bring the pending ninth review to the
conclusion “once the necessary financing is in place and the agreement
is finalized”.
Pakistan remains engaged with the IMF to resume its bailout program that
has been stalled at the ninth review since November last year.
As part of prior conditions to resume funding, Pakistan was required to
undertake a series of steps including new taxation measures, a
free-floating exchange rate, and a hike in energy tariffs.
It was reported earlier that Pakistan is required to make debt payments
of $3.7 billion in May and June, which would cause further pressure on
an already depleted level of foreign exchange reserves.
Pakistan’s policymakers have derived some hope from a current account
surplus in March, which brings down the gap in financing, but securing
fresh funding commitments – even after China’s rollover and another
refinanced loan of $1.3 billion – remains the next hurdle.
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