IMF Managing Director Tips Pakistan to Clinch Loan Review Deal This Week

The International Monetary Fund (IMF) Managing Director Kristalina Georgieva says Pakistan is close to clinching a deal this week on the second tranche of $710 million under its $3 billion Standy Arrangement, reported Bloomberg.

She said in an interview with Bloomberg TV that Pakistan’s authorities are sticking to the program in a very difficult time and a deal is close.

“Pakistani authorities and the Caretaker Finance Minister deserve credit for sticking to the program that they have in a very difficult time,” she said.

The IMF MD said low tax collection was a “parental issue” for Pakistan and said a tax-to-GDP ratio of 15 percent would help sustain the country.

Pakistan remains engaged in talks with the IMF to address its pressing issue of a $6.5 billion external financing gap. The ongoing high-stakes meetings involve key stakeholders, including foreign ambassadors participating in the IMF mission visiting Pakistan.

There is a feeling that the $710 million second tranche of the $3 billion Standby Arrangement (SBA) will likely be disbursed in the first part of December with the approval of the IMF’s Executive Board.