Last Updated on: 9th July 2023, 12:58 am
IMF Has Signaled its Willingness To Ease Loan Conditions in Pakistan, Says Miftah Ismail
In a major relief to Pakistan’s struggling economy, the International Monetary Fund (IMF) has signaled its willingness to ease the difficult conditions under which the country signed the loan program.
This was announced by Finance Minister Miftah Ismail, who is in New York with Prime Minister Shehbaz Sharif to attend the 77th session of the United Nations General Assembly (UNGA).
The Pakistani delegation met IMF Managing Director Karistalina Georgieva and World Bank Group President David Malpass on the sidelines of the United Nations General Assembly and briefed them on the problems the country is facing due to damage from unprecedented floods.
Miftah said the IMF’s managing director had been asked to soften the terms on which she had said she would be willing to do so.
He said he also contacted the World Bank, adding that Pakistan will receive an additional $2 million from the lender this year.
The government led by Imran Khan has signed an agreement with the IMF and the PDM coalition government must abide by it, he said. However, the PML-N government has received some relaxation from the IMF, he added.
Pakistan’s economic situation has changed after floods damaged cotton crops in Sindh, Miftah said. Pakistan will have to import cotton this year, he said.
“Pakistan will also need to import wheat and that will increase the current account deficit,” the finance minister said.
He also said the current government is distributing Rs 25,000 each to 4 million flood-affected families under the Benazir Income Support Scheme (BISP).
Also Read: IMF Will Work With The International Community To Provide Assistance To Flood-Stricken Pakistan
The finance minister has denied rumors of corruption in the flood relief fund, saying such a report was false and unfounded.
IMF Managing Director Kristalina Georgieva earlier acknowledged Pakistan’s difficulties and said she had a very constructive meeting with Prime Minister Shehbaz Sharif and expressed her deep sympathy for the devastation caused by the floods.
Very constructive meeting with @PakPMO.
I expressed deep sympathy for the devastation caused by the #Pakistanfloods2022.
The IMF will continue to support #Pakistan under the current program to help ease the pain of the Pakistani people. pic.twitter.com/4bTooMgImM
— Kristalina Georgieva (@KGeorgieva) September 21, 2022
“The IMF will continue to support Pakistan through the ongoing program to ease the pain of the Pakistani people.”
Also Read: IMF Silent On Floods, But Can Pakistan Expect Favors?