Pakistan’s prime minister says he hopes the International Monetary Fund will make its decision in a day or two on the fate of the much-needed $6 billion bailout package for his country
Motorcyclists drive through a flooded road caused by heavy rainfall, in Lahore, Pakistan, Monday, June 26, 2023. (AP Photo/K.M. Chaudary)
The Associated Press
ISLAMABAD -- Pakistan’s prime minister said Tuesday he was hopeful the International Monetary Fund will make its decision in a day or two on the fate of the much-needed $6 billion bailout package for his country.
The remarks by Shahbaz Sharif came after he spoke to Kristalina Georgieva, the IMF chief, according to a government statement. The two also met last week, on the sidelines of a global financing meeting in Paris.
Talks between Pakistan and the IMF stalled since December, after the global lender delayed the release of the crucial tranche of $1.1 billion from the bailout. The deal was originally signed in 2019 by Sharif’s predecessor, Imran Khan.
The deal envisioned a deadline and if the IMF by Friday decides that Pakistan has not met the terms of the agreement, the fund could cancel the whole bailout package.
Pakistan and the IMF have been at odds over what the fund says is Islamabad's unsatisfactory compliance with the bailout conditions. Pakistan claims it has fully complied with the conditions.
The cash-strapped Pakistani government is currently struggling to avoid a default with financial help from friendly countries such as China, Saudi Arabia, and the United Arab Emirates. It has also been embroiled in an unprecedented economic crisis since Sharif replaced Khan, who was ousted in a no-confidence vote in the parliament last year.
An economic recovery has also been hindered by floods last summer that killed 1,739 people and caused $30 billion in damage.
