PM Shehbaz meets IMF MD Georgieva with hope of programme revival

Prime Minister Shehbaz Sharif met Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), on the sidelines of the Summit for a New Global Financial Pact being held in Paris amid hope that the lender approves the funds allocated under the bailout.

The meeting comes days before the scheduled end of Pakistan’s programme on June 30, with speculation rising on the path forward for the economy without the lender’s aid.

Pakistan not on IMF board’s agenda

“Views were exchanged on the ongoing programmes and cooperation between Pakistan and IMF,” read a statement from the Prime Minister’s Office (PMO).

“The Prime Minister expressed the hope that the funds allocated under the IMF’s Extended Fund Facility would be released as soon as possible. This would help strengthen Pakistan’s ongoing efforts towards economic stabilisation, and bring relief to its people.

“Recalling their recent telephone conversation on 27 May 2023, the PM apprised Georgieva of Pakistan’s economic outlook. The Prime Minister outlined the steps taken by the government for economic growth and stability.”

The statement added that the prime minister underscored that all prior actions for 9th Review under the EFF had been completed and the government was fully committed to fulfilling its obligations as agreed with the IMF.

Meanwhile, the Managing Director of the Washington-based lender shared her institution’s perspective on the ongoing review process.

“The meeting provided a useful opportunity to take stock of the progress in that context,” read the statement.

The resumption of the IMF programme is crucial for the cash-starved economy, which is facing a balance of payment crisis.

The country has barely enough currency reserves to cover one month of imports. It had hoped to have $1.1 billion of the funds released in November but the IMF has insisted on a number of conditions being met before it makes any more disbursements.

Meanwhile, authorities in Islamabad are scrambling to attract funding from its multilateral and bilateral partners.

On Wednesday, Finance Minister Ishaq Dar also met with US Ambassador to Pakistan Donald Blome and discussed Pak-US economic ties besides progress on the IMF loan programme.

Paris summit

In the run-up to his departure to France, Prime Minister Shehbaz Sharif had said that he will “present Pakistan’s position on the need for restructuring of international financial institutions” at the summit in Paris.

In a tweet, the PM said the “globalisation of problems” has made it necessary to come up with “creative approaches to rethink the global financial system to make it representative and equitable.”

In a statement on Tuesday, the Foreign Office (FO) said Pakistan will contribute to the debate at the summit ‘‘as a leading stakeholder in the global discourse, a leader in G-77 and China and one of the largest developing countries most affected by climate change’’.

The premier will also hold bilateral meetings with other world leaders on the sidelines of the summit, the FO said.

At the initiative of President Emmanuel Macron, France is hosting more than 300 heads of state, international organizations and representatives of civil society and the private sector at the Summit.

The aim of the Summit is to lay the groundwork for a new financial system suited to the common challenges of the 21st century, such as fighting inequalities and climate change and protecting biodiversity.