Following the delay in the revival of $6.5 billion International Monetary Fund (IMF) bailout programme, Pakistan is now looking towards friendly countries for more funding well-placed sources said on Wednesday. The staff-level agreement between International Monetary Fund and Pakistan is being delayed from February 9. The current loan programme with the IMF will end on June 30, 2023, and Pakistan is now ‘considering’ a new IMF programme on renewed conditions.

The fund is delaying the ninth review with Islamabad which has ‘forced’ Pakistan to get rid of the current loan programme and generate more funds from friendly countries, sources said. Sources further say during the tenure of Imran Khan’s government, ‘tough’ demands of the IMF were also agreed upon for the loan programme. The incumbent government imposed taxes of Rs170 billion through the money budget in February as per the demands agreed upon by Imran’s government. Prices of gas and electricity were increased up to 40pc and the rupee further depreciated as the IMF was assured to bring the dollar exchange rate as per open market. It may be noted that the IMF has asked Pakistan to arrange $6 billion in external financing till June 2023 to avoid default. Due to a delay in arranging these funds, the 9th programme review worth $1.2 billion remains incomplete.

Credit: Independent News Pakistan-INP