The International Monetary Fund (IMF) wants ‘friendly” nations to praise their funding obligations before the lender signs off on a $6.5 billion bailout program, Pakistan minister said. Owing to this condition of the IMF, there have been delays in completing talks, Pakistan finance minister Ishaq Dar told the country’s upper house of parliament.
Some countries have committed to help Pakistan during the IMF’s consideration, the country’s finance minister said adding, IMF “is asking they should honestly complete and materialize those commitments.”
Pakistan’s government has concluded all IMF demands, the minister said as the nation has taken tough steps including increasing taxes, energy prices, and interest rates. Although the finance minister did not name the countries who made commitments to Pakistan, Saudi Arabia, the United Arab Emirates, Qatar, and China have supported the country in recent months by rolling over debts and providing dollar deposits and oil on credit.
Early this month, the Industrial & Commercial Bank of China Ltd. released $500 million to Pakistan which marks the first installment of a $1.3 billion loan. This also comes amid political tension in the state as the favor of the government led by Prime Minister Shehbaz Sharif has fallen as they accuse the premier of the economic crisis while backing Imran Khan.
Although, the IMF has not pointed out that political tension is provoking any delay in reviving the bailout. Shehbaz Sharif said earlier this week that we have accepted all the conditions, the very tough conditions set by the IMF.
