ISLAMABAD: Pakistani Finance Minister Miftah Ismail said on Monday a $6 billion loan program signed with the International Monetary Fund in 2019 but stalled since March would be revived within "a day or so."
Pakistan desperately needs funds amid dwindling foreign exchange reserves that have dropped to $8.2 billion — barely enough for 45 days of imports — in the week ending June 16.
The country is halfway through a 39-month IMF program that has stalled over the global lender's concerns over the status of some of its objectives, including fiscal consolidation. On June 10, Pakistan unveiled a Rs9.5 trillion ($47 billion) budget for 2022-23, aimed at tight fiscal consolidation in a bid to convince the IMF to restart bailout payments.
But last week the IMF said additional measures would be needed to bring the new budget in line with the key objectives of its programme.
In an informal conversation with journalists on Monday, the Pakistani finance minister said the stalled IMF program would be revived soon.
"God willing, I am hopeful it will be done within a day or so," Ismail said in televised comments in response to question about the program's resumption.
Upon a successful review, Pakistan hopes to receive an around $1 billion tranche, which would also pave the way for funding from other external sources also.
Ismail said the IMF did not have concerns about the 15 percent increase in salaries of government employees announced in the new budget, adding that the matter of taxing people with Rs1.2 million ($5,700) annual income would be settled with the global lender.
"IMF has nothing to do with salaries as long as we have the money," he said.
Ismail previously said on June 14 the IMF had expressed concerns about budget numbers, including fuel subsidies, a widening current account deficit, and the need to raise more direct taxes.
He, however, added that his government was confident it could adjust the budget to get approval from the IMF and was hopeful of securing a successful review this month.
