In a last-ditch effort to secure a bailout, the Pakistani PM meets with the IMF chief.

Pakistan’s prime minister, Shahbaz Sharif, met with the IMF chief on Thursday outside of a world financial gathering in Paris in an effort to release a $6 billion bailout and a vital tranche of $1.1 billion in loans that had been blocked since November.

A week before the $6 billion bailout deal first agreed upon between the IMF and the nation’s former Prime Minister Imran Khan in 2019 expires, Sharif will meet with Kristalina Georgieva, managing director of the IMF, at the Summit for a New Global Financing Pact.

In April 2022, Sharif succeeded Khan following a vote of no-confidence in the parliament. Since that time, Pakistan has seen an unheard-of economic disaster.

The discussion on Thursday occurred a week after the IMF criticised a draught yearly budget that Pakistan’s government had submitted to parliament. Analysts claim that the arrangement is necessary since the release of the next loan tranche will encourage other international financial institutions to lend money to the Islamic nation. According to Esther Perez Ruiz, the IMF’s representative for Pakistan, the drafted budget did not feature a fairer tax system as pledged in the rescue agreement.

Some individuals were concerned that the bailout might not take place as a result of Ruiz’s remarks. A financial catastrophe could result from the rescue plan failing at a time when Pakistan is attempting to avoid default with financial support from China, Saudi Arabia, and the United Arab Emirates. The $30 billion in damage and 1,739 fatalities from the floods that occurred last summer have made it more difficult for the economy to recover.

Sharif has recently claimed that despite his government’s compliance with all the terms of the pact, which expires on June 30, the IMF is still being difficult with Pakistan.

According to a government statement, Sharif and Georgieva discussed how Pakistan and the IMF could work together as the prime minister described steps made to boost the economy.

He gave Georgieva his word that Pakistan will do everything in its power to keep its end of the deal with the IMF, and he voiced his hope that the IMF would quickly deliver the vital $1.1 billion tranche from the $6 billion bailout.

According to the statement, he told the IMF chief that the move will “help strengthen Pakistan’s ongoing efforts towards economic stabilisation and bring relief to its people.”

According to the statement, the IMF director “shared her institution’s perspective on the ongoing review process.”

It has been a week since a migrant boat carrying at least 750 people sank off the coast of Greece. More than 500 migrants, including some Afghans and Pakistanis, are still missing.

While in Paris, Sharif will meet with other leaders to discuss a range of topics, including how to develop business and trade connections to aid Pakistan in overcoming its economic crisis.

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