The International Monetary Fund (IMF) has called for Pakistan to provide “necessary” financing assurances as soon as possible in order to finalize a bailout agreement with the country, according to Nathan Porter, IMF Mission Chief to Pakistan.
Porter welcomed recent financial support from key bilateral partners, but emphasized the need for Pakistan to maintain strong policies and secure sufficient financing to support implementation efforts.
While the statement did not provide details on the financing amount, Porter implied that Pakistan still needs to arrange fresh foreign exchange inflow before the staff-level agreement can be reached.
Prime Minister Shehbaz Sharif acknowledged that Pakistan would have to meet IMF demands in order to secure the next loan tranche of the $6 billion program.
An IMF delegation visited Pakistan in February but left without concluding a staff-level agreement. Despite securing financing assurances from Saudi Arabia, UAE, and China, government subsidies remain a major hurdle to the agreement.