Though the International Monetary Fund (IMF) has informally agreed on a standby arrangement of $9.6 billion for two years, the final decision is expected in the next few days, after 'Friends of Pakistan' response. On Thursday night, David Hawley, Senior Advisor, External Relations Department of International Monetary Fund (IMF), in an online media briefing said that IMF and Pakistan "are still discussing the conditions" for availing the Fund's program.
"We're still discussing whether the Fund's assistance is needed and, if so, under what conditions", Hawley said. He further said," The stage of talks, that took place in Dubai, has concluded. Further discussions will take place in the next few days".
Replying to a question about the strict 'conditionalties' of the Fund, he said, "I think, the way to think about conditionality is an evolutionary process, one which has been underway for some time, where the trajectory of change has been towards making conditionality focused in a more targeted fashion on remedying the problems that have caused the country to turn to the Fund for assistance in the first place".
He added that the Fund has adequate financial resources to meet the perspective borrowing needs of its membership. Earlier, in the Senate, Advisor to Prime Minister on Finance Shaukat Tarin expressed confidence that Pakistan would certainly get the required amount from 'Friends of Pakistan' and if the commitment was not made in time to overcome the financial woes of the country then Pakistan would opt for 'Plan C', that is, standby arrangement by International Monetary Fund (IMF). He dispelled the notion that economy would not suffer after IMF facility.
He said that Pakistan "is in dire need of $5 billion inflow" to overcome its fiscal and external debt crisis. Pakistan needs the amount within the next 7-10 days, but it is still expecting it from 'Friends of Pakistan', or international financial institutions, he added.
He said that there was a difference of opinion between International Monetary Fund (IMF) and Pakistan over 17 percent core inflation and 13 percent interest rate. Tarin said that all international financial institutions (IFIs) have been asking Pakistan to get endorsed its economic recovery plan from International Monetary Fund (IMF).
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