Prime Minister Shehbaz Sharif on Friday said that a delegation from the International Monetary Fund (IMF) would visit Pakistan in two to three days to undertake and complete the ninth review of the economy.
Addressing the public at the Hazara Electric Supply Company’s opening, he said he had a conversation with IMF Managing Director Kristalina Georgieva on Thursday and emphasized Pakistan’s commitment to completing the IMF bailout package.
“I told her to ease the terms of the deal because I cannot burden the common man any further. We have imposed taxes on the rich strata of the society. I requested her to send a delegation for the ninth review and she replied that a team will visit Pakistan in 2-3 days. After inquiring about Pakistan’s relations with China and Saudi Arabia, she also told me that China had urged IMF to support Pakistan,” he said.
Experts speculate that Pakistan is hesitant to follow some of the lender’s terms because of their effect on political capital in a year when elections are expected, which is why the IMF program is currently at the level of the ninth review.
Meanwhile, PM Shehbaz added that the government was trying to mend its ties with the friendly countries.
In a significant development, State Bank of Pakistan’s foreign exchange reserves have dropped to the lowest level since April 2014 as data released on Thursday showed that SBP-held reserves fell another $245 million to a highly critical level of $5.58 billion.
Total liquid foreign reserves held by the country stood at $11.43 billion. Net foreign reserves held by commercial banks stood at $5.85 billion.
“During the week ended on December 30, 2022, SBP’s reserves decreased by $245 million to $5,576.5 million due to external debt repayment,” said the SBP.
Last week, foreign exchange reserves held by the SBP had fallen $294 million to $5.82 billion.
The SBP’s foreign exchange reserves, which were around $18 billion at the beginning of 2022 but have significantly decreased, highlight the pressing necessity for Pakistan to finish the upcoming review of the International Monetary Fund (IMF) plan.
