"The announced fuel cross-subsidy scheme raises new quasi-fiscal and balance of payments risks, and it is amenable to fraud," she said, in a separate text message to Reuters. (Reporting by Gibran Peshimam in Karachi; Writing by Ariba Shahid; Editing by Edmund Klamann)
By Gibran Naiyyar Peshimam
KARACHI, May 14 (Reuters) - Pakistan's external
financing requirements have not been changed in talks with the
International Monetary Fund (IMF) over bailout funds, the IMF
Resident Representative in Pakistan said, denying local media
reports that the Fund was seeking fresh financing.
"There is no truth to reports that the IMF is asking
Pakistan to raise $8 billion in fresh financing," Esther Pérez
Ruiz said in a text message sent to Reuters on Sunday.
Pérez Ruiz said that external funding requirements had not
changed throughout the discussions, under a review that would
unlock $1.1 billion in financing for the cash-strapped South
Asian nation as part of a $6.5 billion IMF package.
A staff-level agreement on the review has been delayed since
November, with nearly 100 days passed since the last staff level
mission to Pakistan - the longest such delay since at least
2008.
On Thursday, the Fund reiterated that obtaining commitments
on external financing from friendly countries would be essential
before the IMF approves the release of bailout funds.
The United Arab Emirates, Saudi Arabia and China came to
Pakistan's assistance in March and April with pledges that would
cover some of the funding deficit.
Pakistan's central bank reserves fell $74 mln to $4.38
billion, barely a month's worth of imports, according to data
released on Thursday.
Pakistani Finance Minister Ishaq Dar said during a seminar
on Thursday that Pakistan would not default, with or without the
IMF, and that the country could not afford to take any
additional harsh measures to accommodate the IMF.
Pakistan has reversed course on implementing a fuel
cross-subsidy that had raised concerns at the IMF.
IMF Resident Representative Pérez Ruiz said that Pakistani
authorities committed to the IMF during last month's spring
meetings that they would not introduce the cross-subsidy scheme
in fiscal year 2023 or beyond. She said the scheme was
"typically regressive and prone to abuse".
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