The International Monetary Fund (IMF) has reportedly rejected Pakistan's assertion that it has fulfilled all the necessary conditions to qualify for funds under a previously agreed-upon loan facility.

As per a report in The Express Tribune, the IMF's assessment of Pakistan's budget for the coming fiscal year poses a new hurdle for the crisis-stricken nation, as the funds are critical to addressing its dire balance of payments crisis. A staff-level agreement to release $1.1 billion from the IMF, which had been postponed for various reasons since November 2022, remains outstanding.

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Under the 2019 deal, the IMF pledged to provide Pakistan with $6 billion subject to certain conditions, but the program has been derailed numerous times, with the full reimbursement still pending due to Pakistan's failure to complete all formalities, as demanded by the lender. Pakistani Prime Minister Shehbaz Sharif and Finance Minister Ishaq Dar have repeatedly stated that all prior conditions have been met and that there is no reason to delay or withhold the funds, but the IMF has refuted this claim, the report added.

The report further states, the IMF is working with Pakistani officials to finalise the 9th review once the necessary funding is in place and the agreement is concluded, as per Nathan Porter, the IMF Mission Chief to Pakistan. Porter's statement contradicts the Pakistani authorities' assertions since the inconclusive face-to-face talks on February 9.

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The Ministry of Finance, already grappling with meeting other conditions, has reportedly taken umbrage at the IMF's latest demand. Senior officials have contended that the approval of the 9th review should not be linked to next year's budget and that the discussion regarding the fiscal year 2023-24 budget should be deferred until the 11th review.

The report suggests that with less than two months until the expiration of the $6.5 billion IMF program, it seems unlikely that Pakistan and the IMF will be able to complete the remaining three outstanding reviews conveniently.

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(Edited by : Sudarsanan Mani)