Pakistani premier meets IMF chief in Paris amid economic crisis

ISLAMABAD (AA): Pakistani Prime Minister Shehbaz Sharif met with the International Monetary Fund (IMF) chief on Thursday in France in an attempt to secure the release of the remaining $1.1 billion in IMF program funds amid the ongoing economic crisis.

Sharif met with IMF Managing Director Kristalina Georgieva on the sidelines of the Summit for a New Global Financial Pact in Paris, the Prime Minister’s office in Islamabad said in a statement.

Islamabad has been negotiating with the IMF since early February for the release of $1.1 billion as part of a $6.5 billion bailout package signed by former Prime Minister Imran Khan’s government in 2019. To meet the IMF’s stringent demands, Sharif’s government has reduced subsidies, removed an artificial exchange rate cap, increased taxes, and raised fuel and electricity prices.

The country has been facing depleting foreign reserves due to political instability, the impact of Covid-19 and devastating floods owing to climate change. Last week the country’s central bank announced that it received a $1 billion loan from China, bringing the South Asian nation’s foreign exchange reserves back to more than $4 billion, which is a record low since 2014.

“The Prime Minister outlined the steps taken by the Government for economic growth and stability. He underscored that all prior actions for the 9th Review under the Extended Fund Facility (EFF) had been completed and the Government of Pakistan was fully committed to fulfilling its obligations as agreed with the IMF,” Sharif was quoted as saying during the meeting with Georgieva in the statement.

Sharif expressed hope that funds allocated under the IMF’s program would be released as soon as possible, adding that this would help strengthen Pakistan’s ongoing efforts towards economic stabilization and bring relief to its people.