Pakistan
Pakistan fails to pursue IMF to release $1.1 billion of bailout package ; talks to continue
Islamabad: In a big blow to cash-strapped Pakistan, the talks with IMF, to access the stalled $1.1 billion of a bail-out package, failed to make headway on Saturday, Reuters reported.
The discussion, which spanned 10-day long hit a roadblock on Saturday and will resume again on Monday.
The IMF had agreed to give Pakistan a $6.5 billion loan in 2019. Pakistan has to implement the conditions laid by the IMF to release at least $ 1.1 billion of the funds, which have been delayed since last December.
Pakistan’s Finance Minister Ishaq Dar said Saturday that government would implement all the conditions agreed upon with the IMF.
In addition to the stalled tranche, another $1.4 billion remains of the $6.5 billion bailout programme, which is due to end in June.
The IMF has asked Pakistan to return to a market-based exchange rate and higher fuel prices, and introduce fiscal measures, including new taxes.
Pakistan recently increased fuel prices, which sent the inflation to a record high - 27.5% on-year in January - and strained supplies of some imported goods.
Dar said Pakistan had agreed with the IMF to implement the conditions. Neck-deep in the economic crisis, Pakistan is in serious need of a successful outcome of talks with the IMF to unlock the $1.1 billion.
The $350-billion economy is still grappling to tide over the damage inflicted by last year’s devastating floods, and the government estimates rebuilding efforts will cost $16 billion.
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