In an unusual move, the IMF on Tuesday urged Pakistan to resolve its political disputes in line with the “Constitution and rule of law.” The remarks by IMF Mission Chief to Pakistan Nathan Porter came after Prime Minister Shehbaz Sharif contacted the chief of the Washington-based lender to revive the much-awaited $6.5 billion bailout package in a last-ditch effort to avoid a possible default.
Cash-strapped Pakistan and the IMF have failed to reach a staff-level agreement on the much-needed $1.1 billion bailout package aimed at preventing the country from going bankrupt.
The funds are part of a $6.5 billion bailout package the IMF approved in 2019, which analysts say is critical if Pakistan is to avoid defaulting on external debt obligations.