Pakistan narrows funding gap to $2 bln, hopes of securing IMF loan this week

Pakistan narrows funding gap to $2 bln, hopes of securing IMF loan this week

Pakistan is pursuing efforts to secure the remaining $2 billion in external funding gap out of a $6 billion target to revive a long-delayed bailout program with the International Monetary Fund.

The South Asian nation has lined up $4 billion in external financing and hopes to obtain a deal with the lender before it unveils its budget on Friday, the Ministry of Finance in Islamabad said on Monday in an emailed response to questions from Bloomberg News.

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Urgency is growing for Pakistan to restart its $6.7 billion bailout program which is set to expire in June. The external financing gap and exchange-rate policy are emerging as among the biggest roadblocks, with the program stalled for more than six months.

“Pakistan remains committed to completing the IMF program and has already demonstrated its seriousness,” the ministry said.Pakistan is committed to mobilizing additional liquidity despite significant contraction of the current-account deficit which has reduced the requirement, said the ministry.

Saudi Arabia and the United Arab Emirates have committed to provide fresh financing of $3 billion to Pakistan. China and its state-owned banks have rolled over $4 billion in loancommitments.

The IMF reiterated its stance