The International Monetary Fund (IMF) has issued a new timeline. Its Executive Board Meeting, which is to run until September 6. Among the updates, the official agenda of the Board still omits Pakistan’s name, creating limbo. Raising forecasts about Pakistan country’s prospects.
New Schedule Details
The new schedule published by the IMF Executive Board encompasses many countries, including Vietnam, Uganda, and Denmark. What has raised eyebrows is the absence of Pakistan from this list.
The IMF is expected to finalize a $7 billion package for the Pakistani government in one of its upcoming Executive Board meetings. However, the IMF has not yet fixed any meeting dates with Pakistan.
Possible Reasons for Delay
There are numerous possible explanations for this delay. In the Ministry of Finance, experts argue that the IMF Executive Board will convene its meeting on Pakistan once certain variables are met. These variables are most likely adherence to economic reforms, provision of external funding, and other financial commitments.
The government has recently failed to secure an arrangement requiring an extra $2 billion of external financing, which the Pakistani nation is trying to obtain better than focused on. The authorities are hopeful this condition will be fulfilled in due course so that the IMF can put Pakistan on its calendar.
Efforts to Secure Financing
In reaction to the IMF demands, Pakistan has intensified its endeavors to seek financial assistance from critical benefactors such as Saudi Arabia, China, and the United Arab Emirates. These nations have sheltered Pakistan financially during depressions and are being asked for help again.
Treasury records state that Pakistan owes Saudi Arabia $5 billion, China $4 billion, and the United Arab Emirates – $3 billion. Pakistan is willing to prolong the payment of these bills to ease an immediate burden on liquidity and comply with the IMF. Pakistan is also looking for oil imports with payment after months towards the stabilization of the economy with Saudi Arabia’s heArabia’sa’stioArabia’stionalputable financing. The government is also exploring options for securing loans from international financial institutions, bilateral partners, and commercial banks.
Background of IMF-Pakistan Negotiations
It should be pointed out that the preliminary understanding of the staff members of Pakistan and the IMF was achieved on July 12. It was a milestone in reaching an almost exhausted milestone that included negotiations over the required $7 billion bailout package. Nevertheless, the final nod will depend on the agreed terms, which must be satisfied as the fund prescribes.
The present state of negotiations and attempts to comply with those conditions only serve to show how tedious it is to obtain such funds. The IMF Executive Board is expected to authorize the $7 billion loan during its September sitting. Which will alleviate the effects of the economic downturn on the country. This strained country’s (IMF) relations want an every moment.
I’ve encircled the timeline for acquiring the bailout package, highlighting the harsh internal political dynamics that impede its implementation. While the government is intensively planning to attract more financing and implement the IMF’s requirements. The announcement of the date for the completion of all negotiations. Under the receptacle package remains an ever-present threat to the welfare of the country’s economy. The following weeks will be crucial in determining. If Pakistan can comply with the stringent conditions set and acquire the requisite funding.
