Pakistan working to draw $3bn balance from IMF loan: Reza Baqir

April 11, 2022 (MLN): Pakistan is working to draw a $3 billion balance from the IMF loan, the Governor State Bank of Pakistan (SBP) Reza Baqir said in an interview with Bloomberg today.

“We are quite confident that quite soon we will be able to put the delay behind us and soon announce the good news of completing the next tranche from the IMF,” he said, adding that the IMF is important not just for the money, but also for the signal that it sends of good housekeeping on the economic policy front that catalyzes funding from other bilateral creditors as well as private capital markets.”

Commenting on the prevailing political uncertainty he said that a stable government is a key to securing a crucial $3 billion remaining from a loan from the International Monetary Fund.

That deal had been threatened by Khan’s decision earlier this year to cut fuel and electricity prices, a step to ease public anguish as inflation pressures mounted but counter to the lender’s requirements, he added.

On the ouster of Imran Khan, he said that Khan’s downfall was accelerated by inflation running faster than 12%, the rupee trading near a record low to the dollar and foreign reserves shrinking to levels only able to cover a couple of months of imports.

He further stated that such political processes are not uncommon in democracies, it is important that economic policymaking institutions act on a timely basis to ensure that the goal of financial stability remains.

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