Pakistan: Delayed funding from friendly countries hinders agreement with the IMF

Pakistan is facing challenges as it strives to secure a $6.5 billion financial rescue package from the International Monetary Fund (IMF) due to delayed funding from friendly countries.

According to Minister of Finance Ishaq Dar, Pakistan has met all the requirements and conditions set by the IMF. However, the international institution is requesting some countries to fulfill their obligations in providing support.

The delay in reaching an agreement has put pressure on Pakistan, which needs to repay its debt of approximately $3 billion by June.

The IMF package would provide an economic lifeline to the country to avoid a possible default. The deal with the IMF would also unlock other financing avenues for Pakistan, which has seen a significant drop in foreign exchange reserves and has one of the weakest performing currencies in Asia.

Minister Dar did not mention the names of the countries that have pledged financial support to Pakistan, but Saudi Arabia, the UAE, Qatar, and China are among the countries that have helped in recent months by delaying debt payments, deposits, and offering oil supplies on credit.

The Pakistani government has taken strict measures to obtain financing, including raising taxes and energy prices and interest rates.

An opinion poll indicated a decline in the popularity of the Pakistani government, with most participants blaming Prime Minister Shahbaz Sharif and his ministers for causing the economic crisis.