Pakistani PM calls IMF MD

Prime Minister Shehbaz Sharif engaged in a telephone conversation with Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF), expressing optimism that a decision on the bailout program would be reached within a day or two.

According to a statement from the Prime Minister’s Office (PMO), the discussion between the Prime Minister and the IMF MD focused on matters related to the IMF program. The statement highlighted that the IMF MD acknowledged the efforts made by the finance minister and his team.

The Prime Minister expressed hope that coordination on the finer details would lead to an IMF decision in the coming days. The statement emphasised Shehbaz’s commitment to working collaboratively to achieve the goals of improving the economic situation.

Last week, Prime Minister Shehbaz Sharif met with Kristalina Georgieva during the Summit for a New Global Financial Pact in Paris. During the meeting, he provided an overview of Pakistan’s economic outlook and expressed optimism that the critical funds would be released.

Pakistan faces a race against time to revive its stalled bailout program, which is set to expire on June 30. Experts have stressed the importance of resuming the IMF bailout, which has been on hold since November last year, as it is crucial for the cash-strapped South Asian economy in addressing its balance of payment crisis.

The anticipated funding of $1.1 billion from the IMF would not only pave the way for additional inflows from multilateral and bilateral partners but also reduce the risk of potential default. Furthermore, it would provide stability to the currency market and anchor expectations regarding economic growth, inflation, and interest rates.