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.