ISLAMABAD: Pakistan is in talks with the International Monetary Fund (IMF) to halt its financing program again, the country’s central bank governor said. Despite the collapse, they are optimistic from an economic point of view.
With declining foreign exchange reserves and a struggling economy, Pakistan entered the three-year سالہ 6 billion IMF bailout program in 2019 but has yet to pass a second review, which has been pending since early last year. Is.
“We hope there is good news for the market and for the world that we are putting this program back on track,” Dr Raza Baqir told Reuters next conference in an interview on Monday.
Last year, IMF staff and Pakistani officials reached an agreement to pave the way for سے 450 million in IMF funding for approval from the Executive Board of the International Lender, which is still pending.
Baqir said there was no disagreement between the two sides on the ultimate goal, and that Pakistan needed to increase its low-tax to GDP ratio.
He said the only discussion was on the timing of the reform measures, which would have an impact on the economy and would cause more hardship for those already suffering from epidemics as well as inflation. Will
“We do not want to be arrested after receiving the promise,” he said. Pakistan and the IMF are working to implement IMF-assisted economic reforms, specifically for tax collection, aimed at stabilizing the economy and curbing fiscal deficits.
Although the bailout program remains, Pakistan has received 1. 1.4 billion in emergency IMF funding aimed at mitigating epidemics and mitigating its economic impact.
Officials are relying on the IMF bailout package to strengthen Pakistan’s financial position and boost global confidence in its economy.
Teresa Daban Sanchez, the IMF’s Resident Representative in Pakistan, told Reuters: “Pakistani officials and the IMF team are closely engaged. Talks are ongoing. And working on non-prevention. “
Baqir also said he was more optimistic about the approach, even as Pakistan battled the second wave of corona outbreaks.
“We are ready for the challenges that lie ahead. We are already in the middle of a CoVID without a vaccine and it will only get better once the vaccine arrives.”
In the last financial year ending June 30, 2020, Pakistan’s economy had contracted 0.4 percent intermittently. Baqir added that economic recovery is underway and the bank’s job is to support the recovery until a vaccine is available.
“I think the next two or three years will bring some good news on the economic front,” he said. Baqir said the increase in its foreign exchange reserves from 7 7 billion to 13 13 billion in recent months was not due to borrowing.
He said Pakistan needed a “rollover of support” from friendly countries that had raised money in banks to accumulate reserves, but did not need new loans.
These countries include Saudi Arabia, which recently demanded the repayment of its 2 2 billion loan from Pakistan. Islamabad returned 1 1 billion to Riyadh in December last year and had to pay another 1 1 billion this month. –