Finance Minister Ishaq Dar said on Monday that Pakistan has “fulfilled all the conditions” set forth by the International Monetary Fund (IMF). He expressed optimism that the Fund will soon sign the staff-level agreement, allowing the $1.1 billion tranche to be released.
Since February, Pakistan and IMF have been involved in negotiations to come to an understanding on a number of requirements before signing the agreement, which also involves outside finance from friendly nations.
Both Saudi Arabia and the United Arab Emirates (UAE), according to Ishaq Dar, have notified the IMF of their commitments to give Pakistan $3 billion.
Dar added that although Abu Dhabi had pledged $1 billion and Riyadh $2 billion to Pakistan, the Washington-based lender had also been notified. All requirements for the staff-level agreement between Pakistan and the IMF, according to the finance minister, have been met.
Ishaq Dar continued, “Pakistan is hoping that IMF would quickly sign the Staff Level Agreement (SLA) and get it approved by its Executive Board.
After IMF financing halted in November due to problems with fiscal policy changes, the nation’s foreign exchange reserves shrank to barely cover a month’s worth of imports. This decline occurred after IMF representatives visited Islamabad for negotiations in February.