IMF to sign deal once Riyadh, Abu Dhabi confirm financial support

• The finance minister promised diplomats to resolve the issue with the IMF as soon as possible.
• At least 46 days have passed since the finance minister claimed to have reached a deal with the IMF.
• Bureaucrats are not happy with the government’s cross-fuel subsidy announcement.

Islamabad: Staff Level Agreement (SLA) between Pakistan and US International Monetary Fund (IMF) will only be signed by the Kingdom Saudi Arabia (Saudi Arabia) and united arab emirates (UAE) confirm financial support, reports news, Citing sources.

“Once the IMF receives confirmation of support from Saudi Arabia and the UAE, then a staff-level agreement will be signed with the IMF,” the source told the publication.

news It was also reported that Finance Minister Ishaq Dar informed diplomats at an Iftar dinner in Islamabad on Sunday that the issue with the IMF would be resolved soon.

Almost 46 days have passed since the IMF and Pakistan concluded review talks in Islamabad on February 9, and just the next day, Finance Minister Dahl claimed that virtual talks had begun and staff-level agreements would be signed within days . However, after 46 days had passed, it was still not guaranteed.

about cross fuel subsidy, There have been different opinions within the Ministry of Finance, because the timing of the announcement cannot be endorsed at all. How the ministry will meet demands from global lenders for subsidies remains to be seen.

Bureaucrats at the ministry tried their best to resist the plan, but the government made it public. The move is under the responsibility of the Prime Minister’s Office.

“We have made it clear that such a program cannot be implemented given the IMF’s notorious opposition to subsidies. At this point, a restart of the IMF program is imperative and such a program would jeopardize the entire process,” said the spokesman, speaking on condition of anonymity officials told the publication.

They added that they were currently not aware of any developments on the controversial issue of cross-fuel subsidies.

The question of how the next 10th and 11th reviews will be completed should the IMF plan to restart.

The 10th review is due on February 3 this year.

While the 11th review is due on May 3, it’s unclear how the two sides will proceed even after the program resumes.