Pakistan seeks Saudi Arabia's confirmation for funds to ink IMF deal

Cashstrapped Pakistan is seeking Saudi Arabias confirmation for securing additional deposits of USD 2 billion and a USD 950 million loan from the World Bank and the AIIB for signing a StaffLevel Agreement SLA with the IMF media reports said on MondayPakistan is eagerly waiting for the USD 11 billion tranche of funding from the International Monetary Fund IMF which the global lender is refusing unless crucial decisions are made by the government and implementedA top government official dealing with the IMF said We are hopeful when asked about the possibility of getting assurance on deposits from Saudi Arabia and a loan from the World Bank The News International newspaper reportedThe linked USD 950 million loans from World Banks Resilient Institution for Sustainable Economy RISEII and Asian Infrastructure Investment Bank AIIB will be approved only if Pakistan secures the IMF bailout Geo News reportedAlso Read Nine policemen killed 13 injured in blast in Balochistan province of PakistanThe cashstarved country is expecting to strike the muchneeded agreement with the global lender within the next few days another top official said adding that the Fund was reluctant to give any time frame for the signing of the agreementPakistan is facing difficulty in its talks with the IMF due to the increased hostility between China and the United States as they have to secure the stafflevel agreement SLA in a delicate balancing act to steer the economy and diplomacy in such a way that suits Islamabads larger interest the report saidIslamabad will receive USD 13 billion from China its allweather ally to shore up its fastdepleting forex reserves Finance Minister Ishaq Dar said last week after Beijing transferred USD 700 to the cashstrapped country in FebruaryPakistan is taking various steps on the Funds behest for the release of a USD 11 billion tranche under the USD 7 billion loan facility including unveiling a minibudget for fetching additional tax revenues of Rs170 billion by raising the GST rate from 17 per cent to 18 per centThe government has also raised the power tariff by over Rs 7 per unit another imposition of power surcharge of Rs 382 per unit increased the gas tariff allowing massive adjustments in the exchange rate increased the petroleum development levy and hiked the policy rate by 300 basis points jacking it up from 17 per cent to 20 per cent the report saidPakistan and the IMF have been holding virtual talks after the two sides held 10 days of intensive negotiations with an IMF delegation in Islamabad from January 31 to February 9 which failed to reach an agreement on the USD 11 billion tranche of funding from the global lenderThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever