Finance Minister Ishaq Dar meets IMF delegation in Geneva

Finance Minister Ishaq Dar on Monday held a meeting with the delegation of the International Monetary Fund (IMF) in Geneva.

The meeting was arranged on the sidelines of the International Conference on Climate Resilient Pakistan co-hosted in Geneva by the UN and the Pakistan government.

“Finance Minister Senator Muhammad Ishaq Dar held a meeting with IMF Mission Chief to Pakistan Mr Nathan Porter, on the sidelines of International Conference on ‘Climate Resilient Pakistan’ at Geneva on 9th January 2023 and discussed challenges to regional economies in the wake of Climate change.

“Finance Minister reiterated the commitment to complete the Fund programme,” the ministry of finance said in a tweet.

Earlier, the IMF said its delegation is expected to meet with Dar on the sidelines of the Geneva summit to discuss outstanding issues and the path forward.

On Monday, PM Shehbaz asked the IMF for a pause in its demands for economic reforms before releasing more financial aid, as the country tries to rebuild after catastrophic floods.

PM Shehbaz said he was trying to persuade the international lender to give Islamabad some breathing space as it tackles the “nightmarish” situation.

The global lender wants Pakistan to withdraw the remaining subsidies on petroleum products and electricity, aimed at helping the masses.

At the United Nations in Geneva for a conference on Pakistan’s recovery from last year’s catastrophic monsoon floods, Shehbaz was asked by reporters about the block on IMF funds.

Pakistan’s economy has crumbled alongside a simmering political crisis, with the rupee plummeting and inflation at decades-high levels, but the floods and the global energy crisis have piled on further pressure.

Shehbaz came to the office in April last year, ahead of the floods in July and August.

A $6-billion IMF deal negotiated by the previous government was restarted after Pakistan finally met conditions such as ending subsidies on fuel.

But Islamabad has so far only received half the funds – the last payment in August – with a further review of the package ongoing.

“Even before these floods hit Pakistan, we were already facing humongous challenges,” he said.

“Yet we had to again connect with the IMF and resurrect an agreement which was violated by the previous government – and accept even harsher conditionalities,” said Shehbaz.