IMF may delay bailout package to cash-strapped Pakistan: report

The IMF's bailout package to cash-strapped Pakistan could be delayed as the global lender is pressing it to be transparent on the CPEC project and wants a written guarantee from Islamabad that its assistance will not be used to repay the loans to China, a media report said on Monday.

Pakistan is seeking USD 8 billion from the International Monetary Fund (IMF) to bail itself out from a severe balance-of-payments crisis that threatens to cripple the country's economy.

With the generous Chinese assistance, Pakistan has so far received a total of USD 9.1 billion in financial aid packages from friendly countries during the current fiscal year.

Finance Minister Asad Umar said earlier this month that a mission of the International Monetary Fund (IMF) would visit Islamabad soon after the spring meetings of the World Bank Group, which includes the IMF, and an agreement should be signed by the end of this month.

Pakistani daily Dawn quoting official sources said the visit of the IMF mission to Islamabad for finalising the bailout package may be delayed as both sides are still engaged in an "intense discussion" on the final details of the deal.

"So, the IMF mission is now more likely to visit Islamabad in May, not April," the sources told the daily.

The finance minister, who led the Pakistani delegation at the meetings, went to New York on Friday but his team, which includes senior officials of his ministry and other government agencies, stayed in Washington for further talks.

Umar during a press conference on Thursday said the two sides had "more or less, reached an understanding" on the bailout package and "in a day or two, we hope to reach a full agreement".

An official familiar with the Pakistan-IMF talks said, "Islamabad still hopes to conclude the agreement before June, as they believe the bailout package would help budget prospects."