Prime Minister Shehbaz Sharif on Thursday hoped that funds allocated under the International Monetary Fund (IMF)’s Extended Fund Facility will be released to Pakistan as soon as possible, stressing the country has completed all prior conditions of the pending ninth review.
According to a statement issued by the Prime Minister’s Office, Sharif expressed these views during a meeting with IMF Managing Director Kristalina Georgieva on the sidelines of the Summit for a New Global Financial Pact in Paris. It said the two officials had exchanged views on the ongoing program and cooperation between Pakistan and the IMF. “Recalling their recent telephone conversation on May 27, 2023, the prime minister apprised Georgieva of Pakistan’s economic outlook,” it said, adding that he also outlined the steps taken by the government for economic growth and stability.
Underscoring that all prior actions for the 9th Review under the stalled $6.5 billion Extended Fund Facility (EFF) had been completed, he said the Government of Pakistan was fully committed to fulfilling its obligations as agreed with the IMF. He also noted that a revival of the stalled program would strengthen Pakistan’s ongoing efforts for economic stabilization and bring relief to its people.
Citing the IMF chief, the statement said she had shared her institution’s perspective on the ongoing review process. Apart from the prime minister, Climate Change Minister Sherry Rehman; Economic Affairs Minister Sardar Ayaz Sadiq; Information Minister Marryam Aurangzeb; Minister of State for Finance Aisha Ghaus Pasha; Special Assistant to the P.M. Tariq Fatemi and Pakistan’s Ambassador to France Asim Iftikhar Ahmad also attended the meeting.
In a subsequent posting on Twitter, Georgieva wrote she was “very pleased” to meet Sharif on the margins of the Paris summit. “We had a fruitful discussion on how the IMF can continue to work closely with Pakistan on policies to maintain macroeconomic stability and advance inclusive growth for the Pakistani people,” she added.
Responding to her tweet, the prime minister said it was a pleasure to meet her and conduct a “productive exchange” on the IMF’s continued engagement with Pakistan. “The government is fully committed to the ongoing Extended Fund Facility (EFF). Though all prior actions for the 9th review have been completed, we are willing to take further steps jointly with IMF,” he said. “Pakistan keenly looks forward to IMF Board’s approval for the 9th review at the earliest,” he added.
The 9th review of Pakistan’s EFF has been pending since November and would unlock a tranche of $1.1 billion when completed. There is growing urgency in Islamabad to revive the stalled program, as it expires on June 30, with the country having barely enough foreign exchange reserves to cover a month’s worth of imports. Both the IMF and the government had confirmed that there is now only enough time for one more review. In a recent statement, the global lender is required Pakistan to present a budget in line with program objectives, restore the proper functioning of the foreign exchange market, and close a $6 billion funding gap in its budget ahead of the board review.