IMF Seeks Assurance on Saudi Funding to Pakistan

IMF seeks assurance on Saudi funding to Pakistan

Bloomberg reports that International Monetary Fund, the global lender, has asked for assurances regarding Saudi funding to Pakistan.

The IMF’s demand is basically to ensure Pakistan’s $4 billion commitment is fully enforced.

Bloomberg stated that the IMF did not want a funding gap following the disbursement of its own fund.

This is a significant issue because, amidst the IMF’s planned loan to Pakistan, the Shehbaz-led Government would not be able to avoid defaulting on its debt with this huge amount.

A few days ago, Minister Miftah Ismail also claimed that as soon as the agreement with the International Monetary Fund (IMF) is completed, Pakistan will receive $8 billion of financial assistance from some allies.

IMF seeks assurance on Saudi funding to Pakistan

Addressing the press, he said that one friendly country plans to invest $1 billion in the stock exchange while another country would provide oil fanning worth $1.2 billion.

However, if Pakistan’s rupee continues to depreciate and the likelihood of default rises, the IMF’s board may vote against approving the cash release.

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