Ishaq Dar, the federal minister of finance and revenue, met separately on Thursday with representatives from China and the United Arab Emirates (UAE), two of Pakistan’s most important financial partners. Pakistan is now negotiating with the International Monetary Fund (IMF) to revive its bailout plan.
Envoys of China UAE meet Dar: According to a statement issued by the Finance Division, Bao Zhong, Acting Charged Affairs, Embassy of the People’s Republic of China, called on Dar at the Finance Division.
According to the release, Dar emphasized the strong, long-standing bilateral relationships between Pakistan and China and expressed gratitude for China’s assistance to Pakistan on all fronts.
“He also informed the Chinese envoy of the country’s economic situation and the development of the ongoing IMF program.”
Zhong assured the Pakistani people of China’s unwavering political and economic assistance.
The UAE Ambassador, Hamad Obaid Ibrahim Salim Al-Zaabi, and the finance minister met separately at the Finance Division.
According to the statement, Dar and Al-Zaabi spoke about the enduring connections of brotherhood between the two nations and went over several topics of shared interest for further enhancing the trade and economic links between the UAE and Pakistan.
Dar noted that Pakistan had worked well with the UAE in several areas, including trade, energy, refinery, and petroleum.
The statement stated that “the UAE envoy also reciprocated the UAE government’s interest in expanding investment in various sectors of the economy of Pakistan.”
Dar commended and welcomed the UAE’s investment plans for Pakistan and guaranteed them the government’s full support.
To fulfill a previous requirement of the stalled IMF rescue package, the administration has been working frantically to collect financial pledges from its multilateral and bilateral partners. As a result, it has successfully secured money commitments from the UAE and China.
Pakistan’s Dependence on IMF Program Amid Funding Uncertainty
The IMF stated that more funding assurances were required, meaning that the $3 billion in promises from Saudi Arabia, and the UAE and the refinancing of a loan from China were insufficient.
According to experts, Pakistan depends on the IMF program to avoid a potential default as it navigates one of its worst economic crises in decades.
Minister of State for Finance Aisha Ghaus Pasha stated on Wednesday that the prime minister and the ministry of finance fully commit to the IMF program, emphasizing that “we are not considering anything without the Fund program.”
When asked what the government’s contingency plan would be if the negotiations with the IMF fell through, Pasha said there is always a Plan B but that the government is not considering anything other than the IMF program.