Pak Finance Minister Dar meets US envoy; discusses stalled IMF loan

Islamabad, Jun 21 (PTI): Pakistan Finance Minister Ishaq Dar met US Ambassador Donald Blome on Wednesday as the cash-strapped country scrambled to get a stalled loan from the IMF to push back the threat of a looming defaul.

Pak Finance Minister Dar meets US envoy; discusses stalled IMF loan

Islamabad, Jun 21 (PTI): Pakistan Finance Minister Ishaq Dar met US Ambassador Donald Blome on Wednesday as the cash-strapped country scrambled to get a stalled loan from the IMF to push back the threat of a looming default.

Islamabad had inked a deal with the Fund in 2019 to get a USD 6.5 billion package, but at least USD 2.4 billion has not been released as the Fund says Pakistan has been unable to meet important prerequisites. The programme is set to lapse on June 30, leaving Pakistan more vulnerable than ever to meet external payments.

Dar informed the US envoy about the progress on talks with the Washington-based global lender while expressing his government’s commitment to complete the programme, according to a statement issued by the Ministry of Finance.

Dar also informed the ambassador about his government’s budgetary measures to reduce the fiscal gap to meet its national as well as international financial obligations, the statement said.

He shared the economic policies and priorities of the government to address the challenging environment and set the economy on the path to stability and growth, it added.

“The two sides also exchanged views about areas of common interest and how the existing bilateral relations between the two countries can be enhanced further,” the statement read.

It stated that Ambassador Blome “expressed confidence in the policies and programmes of the government for economic sustainability and socio-economic uplift of the masses” and “extended his support to further promote bilateral economic, investment and trade relations between both the countries”.

Pakistan was expected to get around USD 1.2 billion from the IMF in October last year as part of the EFF’s ninth review, which would have helped it to access other multilateral and bilateral donors, who are currently reluctant to provide any loans. But almost eight months later, that tranche has not materialised as the Fund says Pakistan has been unable to meet important prerequisites.

The country’s reserves are hovering around USD 4 billion, considered a critical level, and experts believe that it would be difficult to avoid default without the IMF's support.

Pakistan’s economy has been in a free fall mode for the last many years, bringing untold pressure on the poor masses in the form of unchecked inflation, making it almost impossible for a vast number of people to make ends meet. PTI SH GRS GRS GRS

(This story is published as part of the auto-generated syndicate wire feed. No editing has been done in the headline or the body by ABP Live.)