Long-stalled ninth phase requires major financing boost

May 12, 2023 (MLN): Pakistan needs significant additional financing for a successful completion of the long-stalled ninth review of the International Monetary Fund's bailout package, the IMF said in a scheduled press conference on Thursday.

Obtaining commitments of "significant additional financing" is essential before the IMF approves the release of pending bailout funds 

Funds are crucial for Pakistan to resolve an acute balance of payments crisis.

Julie Kozack, the IMF spokeswoman, said that financing already committed by Pakistan's external partners was welcomed

Our team is very heavily engaged of course with the Pakistani authorities because Pakistan indeed faces a very challenging situation," said Kozack.

She added that the economy was facing stagflation, has very large financing needs, and has also been affected by a series of shocks including severe floods.

Pakistan has committed not to implement a cross-subsidy program, an IMF spokesperson told Bloomberg News. 

The government also will not introduce new tax exemptions and will “durably allow” a market-based exchange rate for the rupee currency, the IMF told Bloomberg on Thursday.

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