World News | Pakistan PM Shebaz Sharif asks IMF chief to release troubled bailout fund soon

ISLAMABAD, Pakistan, June 27 (Xinhua) — Pakistani Prime Minister Sheikh Baz Sharif spoke on the phone with IMF Managing Director Kristalina Georgieva on Tuesday, expressing hope that the IMF will announce the release of the bailout within a day or two. Fund Decisions.

The ninth review of the IMF’s $1.2 billion disbursement under the 2019 Extended Fund Facility (EFF) is still pending, with less than 10 days until the program expires on June 30.

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A statement from the prime minister’s office said Sharif discussed the IMF’s plan with Georgieva and expressed hope that they would coordinate on the bailout’s main points, allowing the global bank to make a decision within a day or two.

In 2019, Pakistan signed a $6.5 billion package with the Washington-based International Monetary Fund.

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The scheme has been derailed several times and full repayment is still pending as donors insist that Pakistan complete all formalities.

“The prime minister also reaffirmed his determination to achieve the goal of improving the economic situation through joint efforts,” the statement said.

The Pakistani government is doing everything it can to secure a $1.2 billion fund that was due to be disbursed last October but was delayed due to IMF conditions.

The statement also quoted Georgieva as saying the IMF hoped Pakistan’s economic situation would improve and appreciated the prime minister’s commitment.

“At the meeting in Paris, the IMF Director General recognized the efforts of the Finance Minister and his team to complete the plan,” the statement said.

During a meeting in Paris on the sidelines of the Global Finance Summit last week on June 23, Georgieva urged Shebaz Sharif to resolve policy differences at the level of global bank staff before securing much-needed loans to stabilize cash . – The country’s economy is in trouble.

In a last-ditch effort to meet IMF conditions, Pakistan levied 215 billion rupiah in new taxes in a budget passed by parliament on Sunday, while pledging to cut spending by 85 billion rupiah.

The budget changes follow three days of marathon talks with IMF experts.

Pakistan desperately needs an IMF loan, which would open the way for more funding from various multilateral and bilateral donors to support its meager foreign exchange reserves of about $4 billion.

There are fears that without active IMF support, Pakistan could default on its external financing commitments.

The Pakistani economy has been in free fall for years, putting untold pressure on the poor in the form of uncontrolled inflation, leaving large numbers of people barely able to make ends meet.

(This is an unedited and auto-generated story from a syndicated news feed, the latest staff may not have revised or edited the body of content)