Pakistan has repeatedly sought international aid to support its failing economy. (Represent)
Islamabad:
The United States has agreed to help cash-strapped Pakistan negotiate a deal with the IMF to revive the country’s economic bailout with the global lender, a media report reported.
Pakistan and the IMF have yet to reach a staff-level agreement on reviving the Expansion Fund Facility (EFF), making it difficult for the Pakistani authorities to close the gap and obtain an updated federal budget for the lock up. 2022-23 approved by the National Assembly, Dawn newspaper reported.
The United States has agreed to help Pakistan negotiate a deal with the International Monetary Fund (IMF), the newspaper cited unnamed diplomatic sources as reporting on Sunday.
Earlier, the media reported that Islamabad was “seeking Washington’s support” to extend the EFF with the IMF.
As the largest shareholder, the US has significant influence on the decision-making of the IMF.
On Saturday, Pakistani Ambassador to the United States Masood Khan met with Assistant United States Trade Representative (USTR) in South and Central Asia Christopher Wilson to discuss expanding trade relations between the two countries and encouraging investment. US investment in Pakistan, a statement said.
The USTR Office is responsible for developing and coordinating international trade, U.S. goods, and investment policy direction. It also oversees trade negotiations with other countries, the paper reported.
Pakistan signed a 39-month, $6 billion EFF in July 2019, but the IMF stopped disbursing about $3 billion when the previous government rejected its commitments, the report added.
Now, Islamabad wants the IMF to not only continue to disburse but also expand the size and duration of the program, the report said.
A top Treasury Department official confirmed on Sunday night that it has yet to receive the first draft of a memorandum of understanding on economic and financial policies (MEFP) from the IMF as targeted. previously targeted because some issues remain unresolved.
“We are working very closely with the IMF and will come to a conclusion soon,” the official said.
The government is aiming to secure Parliament’s approval of the 2022-23 budget by June 27-28, according to the Finance Ministry.
Pakistan has repeatedly sought international aid to support its failing economy.
In May, Saudi Arabia agreed to provide Pakistan with a “sizable bid” of around $8 billion to help the cash-strapped country bolster its dwindling foreign exchange reserves and revive its faltering economy. weak.
Pakistan reached the agreement during Prime Minister Shehbaz Sharif’s visit to Saudi Arabia in April. The financing package includes doubling the oil financing facility, replenishing funds through deposits or Sukuks, and transferring existing $4.2 billion worth of facilities.
(Except for the title, this story has not been edited by NDTV staff and is published from an aggregated feed.)
