Prime Minister Shehbaz Sharif has requested a meeting with the managing director of the International Monetary Fund (IMF) on the sidelines of the summit for a new Global Financial Pact in Paris in light of a sharp decline in foreign loan disbursements to just $8.4 billion this fiscal year.
According to cabinet officials who spoke to local media reports, Pakistan has asked for a meeting between Prime Minister Shehbaz and IMF Managing Director Kristalina Georgieva to take place in Paris on June 22–23.
The prime minister is anticipated to fly to Paris on Wednesday (today). In the past month, PM Shehbaz has spoken on the phone with Kristalina and sent her three letters to revive the $6.5 billion package that has stagnated.
The premier met with foreign ambassadors on Monday as well to inform them of Pakistan’s attempts to revive the initiative.
The consequences of the numerous economic, energy, health, and climatic crises are at issue during this summit, especially in the most vulnerable nations.
The meeting will consider strategies for restoring budgetary space to nations dealing with immediate challenges, particularly the most indebted states.
According to information made public by the Ministry of Economic Affairs on Tuesday, Pakistan’s foreign loan inflows for the current fiscal year have decreased drastically, barely totaling $8.4 billion. This is a 37% decrease from the prior year and is considerably below the annual budget projections.
Due to delays in reaching an agreement with the IMF, major international creditors have pulled back, which has led to a drop in disbursements.
Only 37% of the $22.8 billion yearly budget projection was received, or $8.4 billion. According to the Ministry of Economic Affairs, although the government had budgeted $19.1 billion for program loans, actual receipts under this heading only reached $5.5 billion.
