Sources have reported that despite assurances from friendly countries about external funding, the International Monetary Fund (IMF) remains skeptical about Pakistan’s financial stability and has urged the country to take further action to unlock a loan program.
The IMF has requested Pakistan to submit a repayment plan for a $3.7 billion loan in June and to demonstrate greater support from friendly nations to meet its commitments.
However, the IMF has rejected a proposal for a reserves exchange valued at $11 to $12 billion. In a bid to secure a staff-level agreement with the IMF, the government has implemented Rs. 170 billion in taxes through a mini-budget that was originally scheduled for February 9.
The IMF has not included Pakistan on any agenda until May 17, and if the staff-level agreement is not reached, funding will not be available from international financial institutions, and the budget-making process may be impacted.
The staff-level agreement was postponed last month after the IMF requested the arrangement of $1 billion from commercial banks to unlock the loan program.
