According to the International Monetary Fund (IMF), Pakistan’s needs for external funding have not changed during negotiations with the Fund, despite recent claims to the contrary. IMF has not requested $8 billion.
The clarification follows a story by the Express Tribune that claimed the IMF had raised its demand for extra finance from a condition that had not been met of $6 billion to $8 billion in order to assure debt repayments for the period of May to December 2023.
According to Reuters, Esther Pérez Ruiz, the IMF Resident Representative, acknowledged that the country’s needs for external financing had not altered and that discussions were focused on a review to release $1.1 billion in credit as part of an IMF package worth $6.5 billion.
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A staff-level agreement on the assessment has been postponed since November despite continued negotiations, and the IMF has emphasized that prior to allocating bailout funds, pledges on external financing from friendly nations will be required.
Currently, Pakistan’s central bank has $4.38 billion in reserves, which is hardly enough for one month’s worth of imports.
