ISLAMABAD: The International Monetary Fund (IMF) on Wednesday said that timely finalization of Pakistan’s disaster recovery plan is essential for dialogue and continued financial support with multilateral and bilateral partners.
Pakistan was already battling a full-blown economic crisis when it was hit by floods earlier this year, with inflation at its highest in decades and dwindling foreign exchange reserves. It entered a $6 billion IMF bailout program in 2019, and is currently pending a ninth review.
“Timely finalization of the recovery plan as well as continued financial support from multilateral and bilateral partners is essential,” IMF Resident Representative Esther Perez Ruiz said in a message to Reuters.
He added that IMF staff continue to engage with Pakistani authorities on policies to support better targeting of humanitarian needs, while accelerating reform efforts to safeguard economic and financial stability.
The devastating floods killed more than 1,700 people and caused billions of dollars in damage. Estimates of losses by Pakistani officials range from $10 billion to $40 billion.
Pakistan’s finance ministry said last week it would “expeditiously” complete technical engagements with the IMF as part of the program’s ninth review, but a final date for completing the review has yet to be announced. .
The funds will be a lifeline for the South Asian nation, which has been struggling to convince international markets and rating agencies that it has the funds to meet its external financing needs, including debt repayments. are
Pakistan has a $1 billion international bond payment due early next month. Its total foreign reserves held by the central bank stood at $7.9 billion as of last week.