IMF says ‘some more hurdles’ for Pakistan before release of bailout funds

IMF says ‘some more hurdles’ for Pakistan before release of bailout funds

ISLAMABAD – The International Monetary Fund said cash-strapped Pakistan has to make a few more changes before it can salvage much-needed loan to avoid a default, pressurising Sharif-led government to secure assurances from friendly nations that pledged funds.

As Islamabad is looking desperately to unlock a bailout from the global lender, Sri Lanka already got financing this week while Dhaka pushes on with making reforms demanded by IMF.

Amid economic uncertainty, International Monetary Fund said that the Pakistani government has to fulfil the remaining prerequisites to salvage the staff-level agreement. In a statement, IMF representative for Pakistan Esther Perez however revealed that significant progress has been made in discussions with Islamabad toward policies.

She called ongoing talks with the Pakistani authorities fruitful and mentioned that implementation of the policy agenda is a top priority. Perez said there will be a staff-level agreement after the rest of the conditions were met.

The recent statement comes on the heels of another blow as global lender raised reservations on the petrol subsidy scheme announced by Prime Minister Shehbaz Sharif. Perez maintained that Pakistani government has not consulted with the lender on the petrol subsidy scheme.

IMF says Pakistan didn’t consult on petrol subsidy

The financial institution is seeking more details about the scheme from South Asian nation as lender already turned down unfunded and untargeted subsidies.