Prime News, International (Islamabad), September 25: – Pakistan, with increased debt levels, is considering another $ 1 billion loan from the International Monetary Fund (IMF). Negotiations for the deal will begin from October 4. At a time when Pakistan’s relations with the United States and the West have deteriorated dramatically, especially as a result of its role in Taliban-ruled Afghanistan, the country is hoping to secure a debt swap deal. against nature. .
The debt-for-nature swap basically means that Pakistan would be exempt from repaying the amount but would have to commit to investing the money in environmental and biodiversity conservation.
The IMF, meanwhile, has appointed a new country leader for Pakistan, “ahead of high-stakes talks to release a billion-dollar loan tranche,” the Express Tribune said. “The talks will take place amid deteriorating Pakistani relations with the West and threats to fragile stability in the country’s external economy,” the news agency said.
IMF to review Pakistani economy under Article IV
The IMF is also set to review Pakistan’s economic contours under Article IV of the multilateral agency’s statute. As part of the review process, the IMF holds bilateral discussions with its members on economic and financial policies and data. Usually it is an annual affair
Why is this important? Based on this report, the IMF decides on the direction of the lending model. The report also acts as a credible information platform for other international lenders.
During Pakistan’s last Article IV review in 2017, Pakistan’s extensive economic and trade ties with China were noted. (MR, Inputs: Agencies).