The Pakistani government is still busy sorting out the details of the $6 billion payment to the IMF, but now the announcement of a subsidy of Rs 50 per liter on petroleum has deepened the crisis of confidence in the international body.
The announcement of the subsidy also sent a message to the international community that the Pakistani government was not yet ready to fix its house, unable to assure aid from sources other than dollars.
Government sources say that IMF has been assured that Pakistan will get 45 to 700 million dollars from the commitments of the international community in the Geneva conference. However, these sources say that the chances of Pakistan getting more than 500 million dollars from the commitments made in the Geneva Conference are low.
Pakistan wants 3 billion dollars from Saudi Arabia and United Arab Emirates and the remaining 3 billion dollars will be in the form of project financing and commercial loans, but the commercial bank will not give any loan until the matter is settled with the IMF.
The IMF wants to show Pakistan that the $6 billion financing gap has been closed before its board meeting, but it seems the Pakistani government has yet to succeed.
Finance Minister Ishaq Dar has asked to convene the board meeting of the international organization on March 24, but no agreement has been reached between the two sides on the staff level yet. At the same time, Prime Minister Shehbaz Sharif announced the fuel and created a new challenge. Subsidy
The IMF has now asked for details of the subsidy, which the government has not yet provided. On the other hand, the official foreign exchange reserves of the Pakistani government have reached the level of $4.6 billion, including the amount recently received from China. . One billion 70 million dollars in aid was also included.
China recently gave $500 million to Pakistan which was spent on external payments in just three days. The government needs to deal with the IMF seriously as it had $4.1 billion in the last quarter of the fiscal year. . .
The $9.7 billion pledged by the international community to rebuild flood-affected areas in January of this year did not include any new funding, but most of the money was for project financing. As the Islamic Development Bank pledged $4.2 billion Dollars are given. announced, but includes $3.6 billion given to ease oil payments.
Pakistan received $7.3 billion from external sources during the last eight months, but this amount was not enough to cover payments till June.