In an effort to fast-track the ongoing International Monetary Fund (IMF) program, Pakistan has appealed to the United States to persuade the IMF to finalize the staff-level agreement swiftly.
This issue was a key topic of discussion in a meeting between US Ambassador Donald Blome and Pakistan’s Finance and Revenue Minister, Ishaq Dar.
Informed sources reveal that Dar informed the US Ambassador about the Extended Fund Facility (EFF) program nearing its termination date of June 30, 2023. This requires decisive action by the IMF to complete the outstanding 9th Review under the EFF program. He stressed that the program could fail if the IMF maintains its current stance of inaction.
In the same meeting, Ambassador Blome advocated for a decrease in the tax load for certain US businesses operating in Pakistan, primarily those in the beverages industry.
While the Special Assistant to PM on Revenues was present, Dar did not make any promises but assured that the request would be considered during the upcoming budget planning process.
In a statement released on Friday, the finance ministry confirmed that the minister and ambassador discussed areas of mutual interest and potential ways to boost bilateral economic, investment, and trade relations.
Dar presented the government’s pragmatic plans concerning revenues and expenditures to meet national and international financial obligations. He further shared potential economic sectors where both countries could deepen their economic ties.
Pakistan is striving to revive the stalled EFF program with the IMF. However, hopes are fading as the $6.5 billion EFF program expires on June 30. With its foreign exchange reserves at just $4.3 billion, Pakistan is examining strategies to meet other repayment deadlines as it faces about $3.7 billion in foreign debt due this month and in June.
A Financial Times report indicates that the financially strained nation is seeking China’s assistance to roll over more than $2 billion in debt due next month. Two senior officials have confirmed that Beijing has pledged to assist Pakistan in making two crucial debt payments in June, amounting to $2.3 billion, by supplying new funds right after Pakistan settles the payments.
