WASHINGTON: Chief of Army Staff (COAS) General Qamar Javed Bajwa has become active to steer the country out of economic crisis and appealed to the United States to help Islamabad secure an early dispersal of $1.2 billion in funds under an International Monetary Fund loan program.
In the report, Nikkei Asia claims that Army Chief General Qamar Javed Bajwa spoke via telephone with US Deputy Secretary of State Wendy Sherman earlier this week.
Pakistani and American sources told Nikkei Asia that Gen Bajwa urged the White House and the US Treasury Department – both of whom are believed to have a degree of influence over the International Monetary Fund (IMF), to immediately supply nearly $1.2 billion to Pakistan.
The call comes at a time when Pakistan has increased contact with key American officials.
Pakistan and the IMF reached a staff-level agreement over the release of the funds to support the country’s fragile economy. The staff-level agreement will pave way for a $1.2 billion disbursement, which is expected in August. Earlier on July 14, the International Monetary Fund (IMF) and Pakistan reached a staff-level agreement for the release of US$1.17 billion under the combined 7th and 8th reviews of Pakistan’s Extended Fund Facility (EFF).
A statement issued by the Fund said that the agreement is subject to approval by the IMF’s Executive Board.
Additionally, “the IMF Board will consider an extension of the EFF until end-June 2023 and an augmentation of access by SDR 720 million, which will bring the total access under the EFF to about US$7 billion in order to support program implementation and meet the higher financing needs in FY23, as well as catalyze additional financing.”
However, a representative of the IMF told Nikkei Asia that there is a significant distinction between board approval and approval at the staff level.
