Pak FM hints at ‘Plan B’ as IMF loan remains locked

Apparently writing off the International Monetary Fund (IMF) programme, Pakistan Finance Minister Ishaq Dar has hinted at the government’s so-called ‘Plan B’, working immediately next month on rescheduling the bilateral external debt of over USD 27 billion, Pakistan-based Dawn reported. While addressing the post-budget news conference, Dar ruled out any talks about restructuring external debt with multilateral agencies or Paris Club as it is “not a dignified thing to do.” He said that Pakistan will not bother multi-laterals, adding that “rescheduling Paris Club [loan] is not on our menu,” as per the Dawn report. Ishaq Dar expected little from the International Monetary Fund (IMF) beyond disbursements under the delayed ninth IMF review which would have released USD 1.1 billion installments. He said, “There is no chance for the 10th review” meaning that the current IMF programme of USD 6.5 billion will conclude at around USD 5.1 billion without the remaining 10th and 11th reviews for USD 1.4 billion funds.” In response to a question regarding debt rescheduling with bilateral partners like China, Dar did not name any country. However, he said that this was something the government intended to begin working on early in the next fiscal year after the budget is passed, as per the Dawn report.