Pakistani side informed the IMF that Islamabad implemented all harsh measures and both sides should move towards signing the state-level agreement…reports Asian Lite News
Washington has encouraged Pakistan to continue working with the IMF to improve its economy and the business environment, State Department has said.
“Ultimately, it is going to have to be decisions on the part of our Pakistani counterparts to unlock this IMF funding. We encourage Pakistan to continue working with the IMF, especially on reforms that will improve Pakistan’s business environment,” State Department Spokesperson Ned Price said during a daily briefing.
“We believe that it will make Pakistani business more competitive, and will attract high-quality investment,” he said.
“They improve the competitiveness of partnering Pakistani firms, fuelling economic growth that increases employment and household incomes. We believe that by continuing down this path and continuing to make the necessary economic decisions, Pakistan can put itself on a path to sustainable growth,” Price said in response to a question.
“When it comes to economic challenges, when it comes to security challenges, when it comes to political challenges, the United States is ready and able to continue to be a partner to the people of Pakistan,” he added.
Meanwhile, Pakistan has informed the IMF that Islamabad has requested China for rollover of USD 2 billion SAFE (State Administration of Foreign Exchange) deposits for another one-year, The News International reported.
“We have already made the request to the Chinese side for granting rollover of USD 2 billion SAFE deposits, which is going to mature by end of the ongoing month,” The News International reported citing sources. On Monday, Pakistan and IMF held a virtual meeting for moving towards striking a staff-level agreement between the two sides, as per the news report. Pakistan’s Ministry of Finance and State Bank of Pakistan (SBP) tabled the external financing plan before the IMF with the goal of increasing the dwindling foreign exchange reserves, held by the SBP up to USD 10 billion mark till end of June 30, 2023.
A top official sources said that the revival of the IMF programme will allow Islamabad to increase required dollar funding from all possible avenues, including getting rollover of upcoming China’s SAFE deposits to the tune of USD 2 billion under the planned schemes, as per the news report.
As per the news report, the total Chinese SAFE deposits stood at USD 4 billion and the remaining maturity will become due in the coming months.
According to The News International, the top official sources said, “Under the planned schemes of things, the revival of the IMF programme will enable Islamabad to muster up the required dollar funding from all possible avenues including multilateral, bilateral and commercial financing as well as getting rollover of upcoming China’s SAFE deposits to the tune of USD 2 billion.”
Pakistani side informed the IMF that Islamabad implemented all harsh measures and both sides should move towards signing the state-level agreement, as per the news report. Last week, Pakistan’s Finance Minister Ishaq Dar said that external financing confirmation was not part of the prior action of the IMF for signing a state-level agreement, as per the news report. (with inputs from ANI)