Esther Pérez Ruiz, the International Monetary Fund (IMF) representative in Pakistan, stated that the conditions for granting external financing to the country "have not changed" during talks with the fund regarding a bailout package.
In a text message to Reuters on Sunday, Esther Pérez Ruiz said, "Reports indicating that the IMF is asking Pakistan to raise new financing of eight billion dollars are untrue." She noted that the external financing conditions have remained consistent throughout discussions "under a review that would facilitate the provision of 1.1 billion dollars to the South Asian country, which is facing financial distress, as part of a 6.5 billion dollar IMF package."
Pérez Ruiz mentioned that the Pakistani authorities committed to the fund during spring meetings held last month that they would not implement a mutual support plan in the fiscal year 2023 or thereafter.
An agreement at the expert level on the review has been delayed since November, with nearly 100 days passing since the last expert mission visited Pakistan, marking the longest delay since at least 2008.
The fund confirmed on Thursday that obtaining commitments from friendly nations regarding external financing is essential "before approving the release of bailout funds."
According to data released on Thursday, Pakistan's central bank reserves fell by 74 million dollars to 4.38 billion dollars, covering approximately one month's worth of imports.
Pakistan's Finance Minister, Ishaq Dar, stated during a seminar on Thursday that Pakistan "will not default on its debts whether with the assistance of the IMF or without it, and the country cannot take any additional harsh measures to meet the fund's conditions."
Pakistan has backed away from implementing a fuel support program that raised concerns for the IMF. Meanwhile, the UAE, Saudi Arabia, and China provided assistance to Pakistan in March and April following commitments to cover part of the financing gap.
