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Pakistan Seeks US Help To Revive IMF Deal

OMMCOM NEWSbyOMMCOM NEWS
June 17, 2022
in World

Islamabad:Pakistan has sought support from the US for the revival of the International Monetary Fund (IMF) programme, as the global lender is yet to agree to a staff level pact despite the government having taken many difficult steps.

Sources have said the government’s economic team with US Ambassador Donald Blome and sought Washington’s support and acknowledgement of the actions taken so far, The Express Tribune reported.

Blome was apprised about measures that have been taken to revive the programme and bring stability in the economy, they added.

Finance Minister Miftah Ismail and Minister of State for Finance Aisha Pasha met with the US envoy.

The US is the largest shareholder in the IMF and has in the past too played a role in helping Islamabad complete the Fund’s programme reviews, The Express Tribune reported.

The US Ambassador was informed that the government has proposed fiscal consolidation equal to 2.2 per cent of Gross Domestic Product despite challenging times.

Despite three main rounds of talks, including two by the incumbent government, and multiple virtual contacts, the IMF did not share the draft of the Memorandum for Economic and Financial Policies (MEFP) with Pakistan till Thursday afternoon, according to the sources.

The MEFP forms the basis of any staff level agreement and without finalisation, no formal staff level agreement can be signed.

The Pakistan-IMF programme remains derailed since March this year after the previous government backtracked from its commitments.

 (IANS)

Tags: IMF DealPakistan
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