IMF Urges Pakistan to Arrange $8 Billion in Fresh Loans for External Debt Repayments

(CTN News) – For the completion of the long-stalled ninth review bailout package, the International Monetary Fund (IMF) reportedly Urges on Saturday that Pakistan arrange USD 8 billion in fresh loans to back the external debt repayments during the next seven months, as reported by The Express Tribune.

Pakistan Pressured by IMF for Additional Financing of $8 Billion

Unfortunately for efforts to revive the USD 6.5 billion rescue deal, this demand comes despite confirmation from Saudi Arabia and the United Arab Emirates (UAE).

Since November, approximately 100 days have passed since the last staff-level expedition to Pakistan, and still no agreement has been reached at the staff level to release a USD 1.1 billion tranche of a USD 6.5 billion IMF package.

The Express Tribune cites unnamed sources saying that the Washington-based financial agency has increased its demand for additional finance from USD 6 billion to USD 8 billion in order to guarantee debt repayments scheduled for May 2023 through December 2023.

According to The Express Tribune, the lender calculated the USD 8 billion requirements after taking into account all expected receipts and expenditures within the aforementioned time period.

Pakistan Grapples with IMF’s Demand for $8 Billion in Funding

On Thursday, Finance Minister Ishaq Dar claimed that despite the IMF’s insistence, Pakistan will not be making any difficult choices. He went on to say that whether or not the IMF’s staff signs an agreement is entirely up to the organisation.

He made it clear that the government would no longer make difficult decisions in response to the demands of the IMF. We have fulfilled IMF requirements in the past but will not do so going forward.

According to reports, the International Monetary Fund (IMF) is prioritising the arrangement of cash sufficient to cover the foreign debt repayments of crisis-stricken Pakistan. According to the report, the government is no longer prioritising the raising of the shockingly low foreign exchange reserves.

On Thursday, IMF spokeswoman Julie Kozack told reporters that Pakistan required “significant additional financing” to finish the ninth review.

She explained that the economy was experiencing stagflation, had massive finance requirements, and had been hit by a number of shocks, including devastating flooding.

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