Pakistan's options for reviving IMF programme shrinking with each passing day

Islamabad, May 2 Pakistans options for reviving the International Monetary Fund (IMF) programme are limited with the passage of every day. It is yet to be ascertained how the country will proceed to accomplish the existing IMF programme on its expiry deadline of June 30.

Pakistani authorities and the IMF are blaming each other in the aftermath of the delay in the revival of the bailout programme, The News reported Tuesday.

The two sides were holding each other responsible for the "unwarranted delay" in the completion of the outstanding ninth review and reviving the stalled programme after the lapse of almost 80 days since both sides completed Islamabad parleys on February 9.

Pakistan has less than a month's worth of foreign exchange reserves and is awaiting a bailout package of $1.1 billion from the IMF that has been delayed since November over issues related to fiscal policy adjustments, The News reported.

The funds, which can only be released after signing a staff level agreement, are part of a $6.5 billion bailout package the IMF approved in 2019, which analysts say is critical for Pakistan to avert defaulting on external payment obligations.

Sources in the IMF said that they were still waiting for confirmation on external financing requirements despite Islamabad providing guarantees on $3 billion in additional deposits from Saudi Arabia and the UAE, The News reported.

The IMF now wants confirmation on the remaining $2 billion from World Bank, and Asian Infrastructure Investment Bank $900 million and seeking commercial loans from banks.

Without an additional $2-3 billion confirmation, the Washington-based lender is reluctant to strike the deal.