On Sunday, Finance Minister Ishaq Dar provided reassurance to the business community that the stalled $6.5 billion bailout package, aimed at avoiding financial default, would soon be reactivated through a resolution of issues with the International Monetary Fund (IMF).
Speaking at an Iftar dinner hosted by the Islamabad Chamber of Commerce and Industry (ICCI) in honor of foreign diplomats, Dar mentioned that Pakistan is expecting its friendly nations to deliver on their commitments which would enable them to conclude the IMF deal, thus reviving the economy.
This statement follows the uncertainty surrounding the revival of the IMF deal, which holds the key to unlocking $1.1 billion in crucial funds for the country.
According to media reports, the government is relying on the fulfillment of Geneva pledges to partially address the $6 billion financing shortfall due to the worsening trust deficit with the IMF.
Aside from the $3 billion in confirmed commitments from Saudi Arabia and the United Arab Emirates, Pakistan did not possess concrete information regarding the financing of the remaining amount.
During his address on Sunday, Dar mentioned that in 2016, Pakistan was an emerging economy projected to become the world’s 18th strongest economy. However, the country is now confronted with significant economic obstacles.
He reassured that Pakistan would not default and that the government was actively taking all necessary measures to navigate this challenging situation, with the ultimate goal of achieving sustainable economic growth.