ISLAMABAD: The Federal Minister for Finance and Revenue Ishaq Dar hascancelled his trip to the United States to attend the spring meetings ofthe World Bank-IMF, where he was scheduled to meet with the IMF managementto discuss the $1.1 billion loan tranche.
The reason cited for the cancellation was the “domestic state of politicalaffairs.” Despite Pakistan’s efforts to secure the loan, assurances fromfriendly nations for additional funds have delayed the agreement.
In his place, a delegation including Finance Secretary Hamed Yaqoob Sheikhand Economic Affairs Secretary Kazim Niaz, along with State Bank ofPakistan Governor Jameel Ahmad, will attend the meetings and hold talkswith IMF officials to seek the release of the next tranche of funding forPakistan.
Pakistan has been in talks with the International Monetary Fund (IMF) sinceJanuary 2023, seeking to release a $1.1 billion tranche from the $6.5billion bailout package agreed upon in 2019. To qualify for the funding,the government has taken various measures such as reducing subsidies,removing an artificial cap on the exchange rate, implementing taxes, andraising fuel prices.
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However, the agreement has been delayed due to assurances from friendlynations for additional funds, causing Pakistan to rely on alternativemeasures to support its economy.
The cancellation of Ishaq Dar’s trip to the US has come as a blow toPakistan’s efforts to secure the IMF tranche. However, the country’sdelegation, comprising the Finance Secretary, Economic Affairs Secretary,and State Bank of Pakistan Governor, will attend the spring meetings of theWorld Bank-IMF and hold talks with the IMF officials on the sidelines ofthe meetings.
