Pakistani PM Shehbaz Sharif met International Monetary Fund (IMF) Director Kristalina Georgieva in Paris, France, in an attempt to secure a much-needed loan from the global moneylender for the cash-strapped country.
With the $6.5 billion loan programme scheduled to expire at the end of June, Pakistan made another appeal to the IMF to release the $1.1 billion tranche that has been stuck since November 2022.
It was a pleasure to meet you & have a productive exchange of views on the IMF's continued engagement with Pakistan. The government is fully committed to the ongoing Extended Fund Facility (EFF). Though all prior actions for the 9th Review have been completed, we are willing to… https://t.co/1fAsxJsWeV
— Shehbaz Sharif (@CMShehbaz) June 22, 2023
The Meeting
Meeting the IMF Director on the sidelines of the New Global Financing Pact Summit on Thursday, Sharif assured Georgieva that Pakistan had completed all requirements put forward by the organisation.
Climate Change Minister Sherry Rehman, Economic Affairs Minister Ayaz Sadiq, and Information Minister Marriyum Aurangzeb also attended the meeting with Sharif.
Sharif assured the IMF that the Pakistani government is fully committed to the Extended Fund Facility (EFF). The Pakistani PM also emphasised the completion of all prior actions for the ninth review under the EFF.
After the meeting, Georgieva said that the two sides discussed how the IMF can continue to work closely with Pakistan on policies to maintain macroeconomic stability in the country.
Furthermore, Sharif hoped that the IMF would release funds at the earliest, thus helping “strengthen Pakistan’s ongoing efforts towards economic stabilisation, and bring relief to its people.”
During the meeting, Sharif recalled the recent telephonic conversation with Georgieva in March, in which he had outlined the steps taken by the Pakistani government for economic growth and stability.
In my meeting with the UN Secretary General @antonioguterres on the sidelines of the Summit for New Global Financing Pact, we discussed the current status of rehabilitation of Pakistan's flood victims. I thanked the Secretary General for his consistent and powerful advocacy of…
— Shehbaz Sharif (@CMShehbaz) June 22, 2023
Calls for Equitable Distribution of Financial Resources
At the Summit in Paris, Sharif said that the world needs a fair and equitable formula to distribute its financial resources. Highlighting the plight of Pakistan due to the devastating floods last year, he said that Pakistan had to cough out hundreds of millions of dollars from its scarce resources to handle the situation caused by climate change.
The Pakistani PM called out the international financing institutions for spending tons of money on financing wars, while burdening countries in need by asking them to borrow money.
“And when we approached international institutions, they said, ‘Well, we can give you loans’,” Sharif remarked.
The Pakistani leader also met UN Secretary-General Antonio Guterres on the sideline of the summit and thanked him for his climate change advocacy.
Situation in Pakistan
Meanwhile, in Pakistan, a question on Sharif’s meeting and the delay in an IMF loan invited Pakistani Finance Minister Ishaq Dar’s wrath towards a reporter, who has accused Dar of slapping him.
وزیر خزانہ اسحاق ڈار سے آئی ایم ایف سے معاہدہ بارے سوال کرنے پر اسحاق ڈار سیخ پا ہوگئے اسحاق ڈار کا مجھ پر حملہ قابل مذمت
— Shahid Qureshi (@ShahidQurashii) June 22, 2023
وزیر خزانہ نے سیکیورٹی اہلکاروں کو کہا کہ اس سے موبائل چھین کر لے آؤ اور اسے سبق سکھاؤ بڑی مشکل سے جان بچائی pic.twitter.com/SngIzvfU6m
Pakistan desperately needs funds as the country reels under a devastating economic crisis. Despite repeated appeals, it is yet to secure money from the IMF as the organisation is dissatisfied with measures taken by the crisis-hit country. Securing an IMF funding is critical to unlock other bilateral and multilateral financing.