Due to a delay in signing the staff-level agreement, Pakistan has asked the United States for help in order to receive “lenient treatment” from the IMF (SLA).
Till the end of June 2023, Pakistan’s external funding needs from Saudi Arabia, the United Arab Emirates, Qatar, and multilateral creditors are expected to total $6 to $7 billion, according to the international lender.
Pakistan has asked Washington and its partners in the west for help after failing to convince the lender to sign the pact.
The News reports that Ishaq Dar, the minister of finance, has been in touch with the American diplomatic mission in Islamabad to ask for assistance in breaking the impasse.
According to the IMF, full assurance of external financing is required in order to guarantee the “sustainability” of the loan facility.
However, the government had only agreed to terminate electricity sector subsidies through the end of the following fiscal year 2023–2024 when the IMF required their permanent elimination.
During the most recent meeting, which took place the week before, the IMF demanded alterations to the MEFP’s language.
Both the IMF and the Pakistani sides are still debating the next course of action, and each blames the other for the SLA’s delay.