Karachi: Pakistan and the International Monetary Fund are to resume talks online next week they said, after 10 days of face-to-face discussions in Islamabad on how to keep the country afloat ended without a deal.
Pakistan is in the midst of a severe economic crisis and the IMF negotiations are intended to free up at least $1 billion in cash that has been frozen as part of a $6. 5 billion rescue agreements inked in 2019.
Ishaq Dar, Pakistan's finance minister stated that Pakistan and the IMF had reached an agreement on the terms for the funds' delayed release, which has been ongoing since last December. He added that virtual talks would resume and attributed the hold-up to "normal processes". Dar declared, "We will put into practise whatever has been agreed upon between our teams.
In a statement, Pakistan IMF mission chief Nathan Porter said talks were continuing and that considerable progress had already been made. The hold-up though sent the price of the country’s government bonds tumbling again.
Before the funds is released, a so-called staff-level agreement must be made and approved by the IMF's headquarters in Washington. The $6. 5 billion bailout programme, which is scheduled to finish in June, still has another $1. 4 billion in it in addition to the blocked tranche.