Daily Times

The Chief of Army Staff General Qamar Javed Bajwa, reportedly spoke on the IMF loan programme with Saudi Arabia’s and United Arab Emirates’ authorities.

According to reports, the loan programme from the International Monetary Fund was discussed, and Pakistan is soon to see positive development.

It comes days after General Bajwa reportedly pleaded with Washington to assist Islamabad in obtaining an early distribution of $1.2 billion in funds under the IMF programme in order to reduce the risk of defaulting on debt.

According to the report, the army chief reached out to the US Deputy Secretary of State Wendy Sherman on a phone call, sources from both US and Pakistan revealed to the publication’s correspondent Wajahat S Khan, on the condition of anonymity because they were not authorised to speak publicly.

According to the sources, General Bajwa asked the White House and the Treasury Department to pressure the lender to speed up the bailout procedure and release right away the roughly $1.2 billion that Pakistan anticipates receiving under the resumed loan programme.

Earlier on July 13, the International Monetary Fund (IMF) announced that it had reached an agreement with Pakistan to restart a suspended loan programme worth $1.17 billion.

According to an IMF statement,”[The] IMF staff and the Pakistani authorities have reached a staff level agreement on policies to complete the combined 7th and 8th reviews of Pakistan’s Extended Fund Facility (EFF).”

“The IMF Executive Board meeting will be held at the end of August if adequate funding is assured to Pakistan,” the IMF statement said.

According to sources, the IMF meeting is contingent on assurances of $4.2 billion in funding from Pakistan’s friendly countries.

On the other hand, Former Prime Minister Imran Khan signed a $6 billion bailout package in 2019, but it was repeatedly stalled when his government breached subsidy agreements and failed to significantly improve tax collection.