The International Monetary Fund (IMF) on Wednesday said that timely finalization of Pakistan’s disaster recovery plan is essential for dialogue and continued financial support from multilateral and bilateral partners.
Pakistan was already battling a full-blown economic crisis when it was hit by floods earlier this year, with inflation at its highest in decades and dwindling foreign exchange reserves. It entered a $6 billion IMF bailout program in 2019, and is currently pending a ninth review.
“Timely finalization of the recovery plan as well as continued financial support from multilateral and bilateral partners is essential,” Esther Perez Ruiz, the IMF’s resident representative in Islamabad, said in a message to Reuters.
He added that IMF staff continue to engage with the authorities on policies to better target and support humanitarian needs, while accelerating reform efforts to maintain economic and financial stability. has happened
The devastating floods killed more than 1,700 people and caused billions of dollars in damage. Government estimates of the damage vary from $10 billion to $40 billion.
The finance ministry said last week it would “expeditedly” end technical engagements with the IMF as part of the program’s ninth review, but a firm date for the completion of the review has yet to be announced. .
The funds will be a lifeline for Pakistan, which is struggling to convince international markets and rating agencies that it has the funds to meet its external financing needs, including debt repayments.
Pakistan has a $1 billion international bond payment due early next month. State Bank of Pakistan’s foreign reserves stood at $7.9 billion as of last week.
