Economic crisis in Pakistan
Pak minister in Geneva to secure IMF bailout fund
Army chief visits S Arabia; Islamabad seeks $16b for flood rebuilding
Pakistan has stepped up efforts to secure money from an international money lender and a friendly state as the South Asian country faces an unprecedented economic crisis.
An International Monetary Fund (IMF) delegation will meet Pakistan's finance minister on the sidelines of a conference in Geneva beginning on Jan. 9, a spokesperson of the lender said yesterday, as Pakistan struggles to restart its bailout programme.
The lender is yet to approve the release of $1.1 billion originally due to be disbursed in November last year, leaving Pakistan with only enough foreign exchange reserves to cover one month's imports.
The conference in Geneva, co-hosted by PPM Shehbaz Sharif and United Nations Secretary General Antonio Guterres, will look to gather international support for the country in the aftermath of devastating floods last year.
Meanwhile, Pakistan's new army chief has held talks with top Saudi officials, including the defence minister, on his first official trip to the Gulf kingdom.
Pakistan's General Syed Asim Munir, who took charge in November, has followed in the footsteps of his predecessors in visiting Saudi Arabia – a close defence and economic ally – on his maiden overseas trip. He will also visit the United Arab Emirates during the nearly one-week trip.
The current visit by General Munir came at a time when Pakistan faced a crippling economic crisis. Inflation has been skyrocketing while the country is also dealing with the aftermath of last year's catastrophic floods that resulted in an estimated loss of more than $30b.
Earlier this week, Pakistani finance minister Ishaq Dar in a news conference expressed hope that Saudi Arabia will park its deposits in the central bank to provide some relief to the economy.
Islamabad needed Saudi money to shore foreign reserves and ensure a safety valve from default. Riyadh deposited $3b in November 2021, under the tenure of former Prime Minister Imran Khan. Last month, the kingdom extended the terms of the fund.