Pakistan is aiming for a meeting between Prime Minister Shehbaz Sharif and the International Monetary Fund (IMF) Managing Director Kristalina Georgieva.
The requested interaction will occur on the sidelines of the New Global Financing Pact Summit in Paris, scheduled for June 22-23. However, hopes of reviving the IMF program, which expires on June 30, are dwindling despite numerous attempts from Pakistan. Completing the ninth review under the Extended Fund Facility (EFF) program has remained elusive since November 2022.
A high-ranking official informed The News that if the meeting request is declined, the chance of reviving the $6.7 billion Extended Fund Facility program would be practically non-existent. However, the program’s revival chances could increase if the meeting occurs and yield positive results.
Earlier this year, the IMF sent a review mission from January 31 to February 9, but an agreement at the staff level could not be reached. Prior actions demanded by the IMF before the agreement signing have remained unfulfilled.
Stalled Talks and Subsequent Actions
Finance Minister Ishaq Dar’s virtual meetings with IMF officials in April aimed to find a consensus but failed to resolve the disagreement. Following this, Prime Minister Shehbaz Sharif called the IMF MD to discuss ways of reviving the stalled program for a year. However, no significant progress was made. A later statement by IMF Resident Chief Esther Perez Ruiz criticized Pakistan’s 2023-24 budget, prompting a response from Pakistan’s Ministry of Finance. Both parties agreed to stay engaged regarding the conclusion of the pending ninth review.
Minister for Finance Ishaq Dar held a virtual meeting with Andrew Mitchell, Britain’s Minister of State in the Foreign, Commonwealth & Development Office (FCDO). During this interaction, Mitchell expressed his condolences for the tragic loss of Pakistani lives in a recent boat capsizing incident in Greece. He acknowledged Pakistan’s vigilant efforts to maintain economic stability through policy reforms and assured the continuous support and assistance of the British government.
