- A successful IMF review remains critical for cash-strapped Pakistan that narrowly escaped a default in July
- PM Anwaar-ul-Haq Kakar says an IMF team will be arriving on Nov 2 and that Pakistan has achieved its targets
ISLAMABAD: Pakistan’s caretaker prime minister, Anwaar-ul-Haq Kakar, said on Tuesday his country was hopeful of “successfully” concluding an upcoming review of a $3 billion International Monetary Fund (IMF) short-term facility, which saved the South Asian country from a default earlier this year.
A successful IMF review remains critical for cash-strapped Pakistan, which narrowly escaped a default on its debt obligations in July due to the last-gasp new deal from the IMF that replaced an incomplete and stalled program.
Kakar said the Fund’s team would be arriving in Pakistan on November 2 and the South Asian country had achieved its targets for the review.
“IMF delegation is, God willing, arriving on the 2nd [of November]. We have achieved our targets,” the prime minister said at a press conference.
“So, we are quite comfortable that our negotiations with them for the second tranche will conclude very successfully.”
As part of the bailout deal, Pakistan received the first tranche of $1.2 billion from the IMF in July.
A successful review of the facility will pave way for the next tranche to support the South Asian country, which has been grappling with currency depreciation, depleting foreign exchange reserves and double-digit inflation for months.
Pakistan recently launched a crackdown on currency smugglers, announced curbs on Afghan transit trade and directed authorities to ensure the recent drop in petroleum prices translates into the prices of commodities. The measures have shown some signs of economic recovery.
Kakar said the appreciation of local currency had reduced the circular debt by more than Rs4,000 trillion rupees, while the restrictions on Afghan transit trade had benefitted the local industry.
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