ISLAMABAD: The International Monetary Fund (IMF) has informed Pakistan that it has received confirmation of additional reserves of $2 billion from Saudi Arabia, reviving hopes of an early signing of the agreement. .
Islamabad has been in talks with the IMF since late January to release $1.1 billion from the $6.5 billion bailout package agreed in 2019. , raised taxes and hiked fuel prices.
However, assurances of additional funds from friendly countries have delayed the agreement.
Sources confirmed to JEE News on Wednesday that the lender had informed Pakistani authorities about the development and the fund’s staff seemed largely satisfied with the latest confirmation.
“Saudi authorities are now ready to make a public announcement, possibly during Prime Minister Shahbaz Sharif’s upcoming visit to the kingdom,” the report said.
The Saudi Ambassador to Pakistan had recently hinted during an interview that his country has always supported Pakistan in critical situations and good news will be announced soon.
“All eyes are now on the UAE to confirm another $1 billion in deposits, paving the way for the termination of the Staff Level Agreement (SLA) with the IMF,” the source said. can.”
Finance Minister Ishaq Dar is likely to visit the United Arab Emirates on his way to the US where he is expected to discuss the release of funds.
Petrol subsidy
However, there was still another hurdle in the way of signing the SLA with the IMF as the Ministry of Petroleum, in consultation with the PM’s office, had announced an unplanned cross-fuel subsidy for owners of motorcycles and cars up to 800cc. Need to finish at this stage.
According to sources, the government is yet to withdraw the proposed cross-fuel subsidy, which cannot be implemented.
Such schemes were considered in the past under former finance minister Shaukat Tareen and also during the PDM-led government when Miftah Ismail held the charge of the finance ministry.
Miftah Ismail had also allocated Rs 48 billion in the name of cheap petrol during the last budget but it could not be implemented as such schemes could not be designed properly.
The announcement of the half-baked cross-fuel subsidy gave the IMF an excuse to delay the signing of the SLA, as it was still raising questions to get more details to ensure that the scheme was transparent. How will it be implemented?
