ISLAMABAD – Cash-strapped Pakistan moved a step closer to unlock much-needed funds loan from the International Monetary Fund (IMF) bailout as United Arab Emirates is likely to give assurance to US-based lender.
Media reports quoting Finance Ministry officials said the matters about the assurances of additional $ 1 billion funds have been finalized with Emirates and IMF will get the on-paper guarantee this week.
Secretary Finance Ministry will also update the IMF officials during meetings in Washington.
The global lender earlier confirmed it has received the assurance from Saudi Arabia, while the agreement with the global lender was delayed, causing further depreciation of the local currency.
The assurances from friendly nations are one of the key demands laid forth by the fund to release the next tranche of loan to the crisis-hit country. IMF wants friendly nations to honour their pledges to fund Pakistan before the multilateral lender finalizes $6.5 billion bailout program – a move that led to a delay in talks with the IMF for the program.
The country of over 220 million has been struggling with a massive economic crisis with the common man bearing the brunt of skyrocketing prices, and the masses are battling to get basic commodities as the government taking desperate measures tabled for economic revival.
Consumer price inflation in South Asian nation climbed to a record high in March from a year earlier, while dozens of people were killed in stampedes for food aid.