https://arab.news/m8yue
- The deal is expected to unlock other bilateral and multilateral financing avenues for Pakistan
- The IMF bailout package is vital for the country to avoid defaulting on external debt obligations
ISLAMABAD: Pakistan Finance Minister Ishaq Dar said on Thursday his country was “very close” to signing a staff level agreement with the International Monetary Fund.
“We seem to be very close to signing the staff level agreement, hopefully, God willing, in the next few days,” Dar said at a seminar in Islamabad.
An agreement would release $1.1 billion to the cash-strapped South Asian economy.
The funds are part of a $6.5 billion bailout package the IMF approved in 2019, which analysts say is critical if Pakistan is to avoid defaulting on external debt obligations.
The deal would unlock other bilateral and multilateral financing avenues for Pakistan to shore up its foreign exchange reserves, which have fallen to a lowly four weeks worth of import cover.
Islamabad hosted an IMF mission since early February to negotiate the terms of a deal, including the adoption of policy measures to manage its fiscal deficit ahead of annual budget due around June.