The IMF has postponed the review of the two $ 6 billion bailout packages for cash-strapped Pakistan scheduled for Friday, citing delays by the state in implementing agreed upon actions, a media report said on Tuesday.
The International Monetary Fund Executive Board approved a $ 6 billion three-year loan package for Pakistan in July last year to curb rising debt and prevent a shadowing balance of payments crisis, in return for difficult austerity measures.
Pakistan approached the IMF in August 2018 for a bailout package after Prime Minister Imran Khan’s government took over.
Apart from loans from China, Saudi Arabia and the UAE, Prime Minister Khan’s government was forced to turn to the IMF because of increasing economic problems.
The IMF has confirmed the delay in reviewing the two bailout packages but said its priorities have now shifted to the approval of a $ 1.4 billion fast financing facility.
The Ministry of Finance told The Express Tribune that the IMF did not notify him of the delay in approval of the second review of the 10-month loan program.
In February, Pakistan and the IMF agreed that the fund’s executive board would approve a second review for the release of a third loan phase of USD 450 million on April 10, subject to the fulfillment of all conditions by the Pakistani government.
Sources said the IMF board would not accept Pakistan’s request for approval of a second review for the October-December 2019 period under the Extended Fund Facility (EFF) on April 10.