The International Monetary Fund (IMF) has “welcomed” Pakistan’s confirmation of having secured crucial bilateral support from key partners and said it looked forward to receiving further “financing assurances as soon as possible”, which would help conclude the much-delayed ninth review of a $7 billion loan programme.

The statement from the Fund came a day after Finance Minister Ishaq Dar said the UAE had confirmed its commitment to the IMF for its bilateral financial support of $1 billion to Pakistan, bringing the country one step closer to securing the deal with the lender that is critical for avoiding default.

The finance minister had also announced that the State Bank of Pakistan was to receive on the same day the third and last disbursement from the Industrial and Commercial Bank of China (ICBC) worth $300 million out of its $1.3bn loan.

Today, in a statement available with Dawn.com, IMF Mission Chief to Pakistan Nathan Porter said, “We welcome the recent announcement of important financial support to Pakistan from key bilateral partners.

“During the meetings between the Pakistani delegation and IMF staff and management, there was agreement on the need to maintain strong policies and secure sufficient financing to support the authorities’ implementation efforts,” he added.

The IMF official said the IMF was supporting these efforts and looking forward to “obtaining the necessary assurances as soon as possible to pave the way for the successful completion” of the 9th review of an Extended Fund Facility (EFF), signalling Pakistan still expects more funds from friendly countries.

Recently, Jihad Azour, who heads IMF’s Middle East and Central Asia Department, said the IMF was working “hand-in-hand” with Pakistan and its bilateral donors to ensure that Islamabad gets the financial support it needs to stabilise the economy.

At a Thursday afternoon briefing in Washington — where the World Bank Group is holding its spring meetings — Azour also dispelled the impression that the Fund was dictating terms to Pakistan.

The same day, IMF Managing Director Kristalina Georgieva also said the IMF hoped to complete its current programme with Pakistan successfully.

“My hope is that with the goodwill of everyone, with the implementation of what has been already agreed by the Pakistani authorities, we can complete our current programme successfully,” Georgieva had said at a news briefing in Washington.

The recent developments are a key step forward in signing a much-delayed staff-level agreement (SLA) with the Fund and unlocking multilateral disbursements. Since early February, Pakistan has been negotiating with the IMF to revive the $7bn bailout programme to secure a $1.1bn tranche.

Securing payments from friendly countries has been Pakistan’s goal since last month after Prime Minister Shehbaz Sharif said the lender wanted external financing commitments fulfilled from friendly countries before it released bailout funds.

Subsequently, on April 6, the state minister of finance had said that the Fund had received a commitment from Saudi Arabia regarding funding for Pakistan.

Several friendly countries, such as Saudi Arabia, China and the UAE, had made commitments to help Pakistan fund its balance of payments.

PM lauds China, other friendly nations for support

Meanwhile, Prime Minister Shehbaz Sharif on Saturday rued that his government “inherited an IMF agreement that was in tatters” and expressed his determination to overcome these challenges by striking a deal with the lender as soon as possible.

Speaking at a ceremony in Lahore earlier today, the premier said the “day will soon come when Pakistan will be free from the shackles of IMF”, adding that it would be the greatest joy for the country.

He acknowledged that the government had to accept the stringent conditions set by the IMF as there was “no alternative”. He said the “IMF’s last condition was that we bring in a few billion dollars from our friendly countries”.

PM Shehbaz said China had recognised two months ago that the conditions imposed on Pakistan would prove tough to be fulfilled.

He lauded China’s decision to roll over a $2 billion loan last month that had provided relief during the acute balance of payment crisis, and mentioned it as one of “Pakistan’s best friends” alongside Saudi Arabia, the UAE and Qatar.

Shehbaz also expressed gratitude to Saudi Arabia and the UAE for providing Pakistan with $3bn and credited Foreign Minister Bilawal Bhutto-Zardari, Dar, and Chief of Army Staff General Asim Munir for their efforts.

“The struggle, the hard work for it, the sweat spilled for it — our young foreign minister Bilawal Bhutto made efforts [and] Ishaq Dar, who cannot even sleep at night, [worked] day and night.

“And the new commander who has come in — Gen Asim Munir — stayed up at nights and [spoke] to Saudi Arabia and the UAE,” the premier added.

PM Shehbaz asserted that all the agreed-upon conditions of the IMF had been fulfilled and the IMF had “no excuse left” to further delay the signing of the agreement.

He expressed the hope that the loan would be granted soon and said Pakistan had to explore ways to become self-sufficient in order to prosper.