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Tuesday August 09, 2022

With increase in PDL on July 31, Pakistan has fulfilled all prior conditions: IMF

Board's meeting is tentatively planned for late August once adequate financing assurances are confirmed, says IMF official

August 02, 2022
A represnettaive image.
A represnettaive image.

ISLAMABAD: Pakistan has fulfilled all the prior actions for the combined seventh and eighth reviews for the revival of the $6 billion loan programme, according to a statement by IMF Resident Representative in Islamabad Esther Perez Ruiz.

The IMF official said that the country increased the petroleum development levy (PDL) on July 31 as per the agreement reached with the Washington-based lender.

The federal government revised the prices of petroleum products for the next fortnight from August 1, increasing the PDL on petrol by Rs10-20 and diesel by Rs5-10 per litre.

IMF Pakistan chief Esther Perez Ruiz said that the Fund’s Executive Board meeting will be held at the end of August if adequate funding is assured to Pakistan.

The IMF approval is subject to assurances of funding of $4 billion from Pakistan's friendly countries, sources said.

Pakistan had reached the staff-level agreement with the IMF earlier this month amid the country’s dwindling forex reserves and a worsening economy.

The delay in the revival of the loan programme coupled with political uncertainty has sparked fear of default, however, Finance Minister MIftah Ismail had assured the nation multiple times that the financing needs are met.

Sensing the gravity of the situation, Chief of Army Staff General Qamar Javed Bajwa also approached the administration of US President Joe Biden seeking Washington’s help to pressurize IMF for the early disbursement of the tranche.