Pakistan Confident in Getting IMF Deal Extension

    International Monetary Fund Managing Director Dominique Strauss-Kahn with Pakistani Finance Minister Abdul Hafeez Shaikh. Pakistan is confident that it will secure a three-month extension for the country's USD11.3 billion stand-by arrangement with the financial institution. Photo by: Stephen Jaffe / IMF

    Pakistan’s economic officials are reportedly confident that the country will secure a three-month extension for its USD11.3 billion standby arrangement with the International Monetary Fund. 

    The officials are expected to submit a proposal for extension to the IMF headquarters in Washington on Dec. 22 or 23, the Daily Times reports, citing official sources. The newspaper notes that economic officials were able to secure the necessary political endorsement for the extension request but did not file for consideration during IMF’s latest board meeting on Friday (Dec. 17) due to the country’s nonobservance of several major performance benchmarks of the arrangement. 

    The request, which wil be submitted by Pakistan’s director in the IMF, would include explanations why the country did not meet the performance benchmarks, the Daily Times explained, citing sources familiar with the proceedings. The sources, which were not named, explained that the economic managers feel confident they would get the three-month extension, as well meet all benchmarks by March 2011. 

    The standby arrangement is scheduled to expire Dec. 31, 2010 with approximately USD3.6 billion worth of pending payments to Pakistan.

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    • Ivy Mungcal

      As former senior staff writer, Ivy Mungcal contributed to several Devex publications. Her focus is on breaking news, and in particular on global aid reform and trends in the United States, Europe, the Caribbean, and the Americas. Before joining Devex in 2009, Ivy produced specialized content for U.S. and U.K.-based business websites.