Testing times for Pakistan as IMF demands $8bn assurance to unlock loan tranche

ISLAMABAD – The International Monetary Fund (IMF) has laid forth another condition of arranging assurance of further $8 billion on external financing to revive the $6.5 billion loan programme. 

The cash-strapped country is scrambling to complete the ninth review to secure $1.1 billion loan from the global lender but clouds of uncertainty overhang despite meeting multiple condition, including free floating of local currency and massive taxes on electricity. 

In line with the IMF conditions, Pakistan has already secured assurance of $2 billion from Saudi Arabia and $1 billion from the UAE. 

The global lender now wants the South Asian country to arrange $8.4 billion in fresh loans to ensure debt repayments during the next seven months (May-December 2023).

The IMF has asked Pakistan to secure $6 billion in external financing till June 2023 to avert imminent default.

On Thursday, Finance Minister Ishaq Dar categorically stated that Pakistan will not take further tough decisions to meet the demands of the IMF.