Key Highlights :
Islamabad has once again asked United States (US) to play its role in restoring the much-needed loan programme for Islamabad. The delay in finalizing the staff level agreement with the International Monetary Fund (IMF) has once again put the country's economy in a precarious situation. The IMF loan programme was first approved in December 2017 but has yet to be finalized. The delay is due to disagreements over the staff level agreement between the IMF and the government of Pakistan. The IMF has been insisting on appointing a full-time Deputy Director for the country, while the Pakistani authorities are insisting on retaining the right to appoint the deputy director. In a recent interview, IMF Resident Representative for Pakistan, Shahid Javed Burki, said that the delay in finalizing the staff level agreement is "not a big deal" and that the IMF is "working hard" to finalize it.
Islamabad has been struggling to repay its debt obligations since the late 1990s. The country's debt burden has increased significantly in recent years, partly as a result of large infrastructure investments made by the previous government. The government has been trying to negotiate a new debt agreement with the IMF but has been unsuccessful so far. The IMF has warned Pakistan that it could face sanctions if it does not meet its debt obligations.