The International Monetary Fund (IMF) is still working with Pakistan to secure funds and policy guarantees in order to come to an agreement on the ninth review of the $6.7 billion loan that was agreed upon in 2019, a spokesperson for the Washington-based lender said, reported Bloomberg on Thursday.
The comments come after violent skirmishes between Imran Khan’s supporters and police broke out across the country on Tuesday, following the former prime minister’s arrest by Pakistan’s anti-corruption agency.
In the midst of its worst economic crisis in decades, with dwindling reserves, a stalled IMF bailout program that is set to expire in June, and few other financing sources in sight, Pakistanis preparing to hold closely contested elections in the autumn.
Speaking to Bloomberg, the spokesperson said that under the current loan program, Pakistan owes $2.6 billion in loans.
“We want an assurance on a coordinated mechanism for debt recovery from Pakistan,” the spokesperson stated, as well as an assurance on implementation of the economic policy.
The IMF bailout is widely seen as crucial for the South-Asian country that also faces the risk of default unless it receives massive support.
Earlier, Moody’s Investors Service warned that Pakistan could default without an IMF bailout as the country faces uncertain financing options beyond June.
