During his speech at the Hazara Electric Supply Company ceremony in Islamabad, he made the comments.
In 2019, Pakistan signed up for a $7 billion IMF programme, which was later increased to $6 billion. The ninth evaluation of the programme, which would release $1.18 billion, is still pending. It was previously delayed for two months because the PML-N-led government refused to agree to some requirements put forth by the Fund, and the issues still haven’t been resolved.
The PM stated during a speech at the Hazara Electric Supply Company’s inaugural event, “I spoke to IMF Managing Director Kristalina Georgieva [Thursday] and stressed that Pakistan wishes to conclude the IMF bailout package.”
He made a point of assuring Georgieva that the present administration sought to uphold the conditions of the agreement that the outgoing administration had “broken and shattered.”
He emphasised the damage caused by the disastrous floods that occurred a year ago while pledging Pakistan’s best efforts to uphold the conditions of the IMF agreement.
I asked her to loosen the agreement’s restrictions because the masses can no longer bear this load. The premier declared, “We have imposed taxes on the wealthy sectors of society.”
“I also urged her to send a delegation for the ninth loan programme review, and she replied that IMF officials were going to visit Pakistan in a few days (2–3).”
The resumption of IMF programme is crucial
Pakistan needs the IMF programme to resume because of the falling rupee, declining reserves, and worsening macroeconomic indicators.
Thursday saw a further $245 million decline in the State Bank of Pakistan’s (SBP) foreign exchange holdings, bringing the total to a very precarious $5.58 billion. Since April 2014, SBP-held reserves have never been this low.
At the same time, the government has also been unable in obtaining crucial support from allies. As concerns over the nation’s ability to pay its debts and fund imports have grown, the battle has left Pakistani politicians rushing to arrange foreign money.
Additionally, there are market rumours that Pakistan could possibly default, but the Pakistani government is still confident that Saudi Arabia will provide essential assistance for the country’s foreign exchange reserves.
