ISLAMABAD: Following the postponement of the $6.5 billion International Monetary Fund (IMF) bailout package, Pakistan is now seeking friendly countries for additional finance.
The International Monetary Fund and Pakistan’s staff-level agreement has been postponed until February 9.
The present IMF loan programme will expire on June 30, 2023, and Pakistan is now ‘considering’ a new IMF programme with revised terms.
According to insiders, the fund is postponing the ninth review with Islamabad, which has ‘forced’ Pakistan to abandon the present loan programme in order to raise more funds from friendly countries.
According to sources, during Imran Khan’s leadership, ‘severe’ IMF demands for the credit plan were also agreed upon.
In February, the current administration levied Rs170 billion in taxes through the money budget in response to Imran’s government’s requests. Gas and power prices were raised by up to 40%, and the rupee fell further as the IMF promised to return the dollar exchange rate to the open market.
It should be remembered that the IMF has requested that Pakistan secure $6 billion in external financing by June 2023 in order to avoid default.
The 9th programme review, worth $1.2 billion, remains unfinished due to a delay in arranging these funds.