ISLAMABAD - Pakistan is seeking help from friendly countries amid economic crisis and political uncertainty, sources said.
Close aides of Prime Minister Shehbaz Sharif told The Nation that the government was in contact with the United Arab Emirates, Saudi Arabia and United States for financial and diplomatic support. One official said China had already extended help through a loan deal of $2.3 billion to boost its sliding foreign exchange reserves. “The Chinese consortium of banks has today signed the RMB 15 billion ($2.3 billion) loan facility agreement after it was signed by the Pakistani side”, Finance Minister Miftah Ismail had recently tweeted.
Last week, the International Monetary Fund said it had reached a preliminary agreement with Pakistan to revive a $6 billion bailout package for this impoverished Islamic nation, which has been facing a serious economic crisis since last year. Pakistan and the IMF originally signed the accord in 2019. But the release of a slightly over $1 billion tranche had been on hold since earlier this year. That’s when the IMF expressed concern about Pakistan’s compliance with the conditions of the bailout under former Prime Minister Imran Khan. The parliament ousted him through a no-confidence vote in April.
Under newly elected Prime Minister Shehbaz Sharif, the govt has been in talks with the IMF since May, to avoid a default like Sri Lanka. “The Agreement with Fund has set the stage to bring country out of economic difficulties,” Sharif wrote on Twitter. Finance Minister Miftah Ismail blames Imran Khan for creating a Sri Lanka-like situation in Pakistan.
