PM Shehbaz meets IMF chief, urges release of stalled funds

PARIS: Prime Minister Shehbaz Sharif on Thursday urged International Monetary Fund (IMF) Managing Director Kristalina Georgieva to unlock stalled funds because the country had met all conditions stipulated by the lender.

Meeting the IMF MD on the sidelines of the Summit for a New Global Financial Pact being held in Paris, the premier assured the Washington-based lender of the country’s commitment to fulfilling all promises made in this regard.

Furthermore, the two exchanged views on the ongoing programme and cooperation between Pakistan and IMF.

Recalling their last telephone conversation, the prime minister apprised Georgieva of Pakistan’s economic outlook.

He outlined the steps his government had taken for economic growth and stability, underscoring that all prior actions for the 9th review under the Extended Fund Facility (EFF) had been completed and that Pakistan was fully committed to fulfilling its obligations as agreed with the fund.

The prime minister expressed hope that the funds allocated under the EFF would be released as soon as possible.

“This would help strengthen Pakistan's ongoing efforts towards economic stabilisation and bring relief to its people,” he said.

In response, Georgieva shared her institution’s perspective on the ongoing review process.

The meeting provided a useful opportunity to take stock of the progress in that context.

Pakistan has barely enough currency reserves to cover one month's imports. It had hoped to have $1.1 billion of the funds released in November — but the IMF has insisted on several conditions before it makes any more disbursements.

With time for only one last IMF board review before the end of the $6.5 billion EFF, Pakistan was expected to present a budget in line with the programme's objectives, restore the proper functioning of the FX market, and close the $6 billion gap ahead of the board review.