Winning IMF trust for release of next tranche taking time, says minister.

ISLAMABAD -- Minister of State for Finance and Revenue Senator Aisha Ghaus Pasha said Wednesday that the federal government is facing an uphill task in regaining the International Monetary Fund's (IMF) trust as the nation desperately seeks to unlock the stalled loan tranche.

"There was a serious trust deficit between Pakistan and the IMF," Pasha said during the Senate Finance Committee's meeting, which met under the chairmanship of Senator Saleem Madviwala, to discuss the IMF programme.

The Washington-based lender has been in talks with the Pakistani authorities since end-January to resume the $1.1 billion loan tranche held since November, part of a $6.5 billion Extended Fund Facility (EFF) agreed upon in 2019.

The IMF funding is critical for Pakistan to unlock other external financing avenues to avert a default on its obligations. The State Bank of Pakistan's (SBP) reserves are at a critical level of $4.6 billion and cover four weeks of imports.

However, Aisha stated that "there is nothing to worry about" as Pakistan will soon unlock the loan tranche following assurances to the Fund from friendly countries.

"We have made headway in securing financing from friendly countries and the IMF is now confirming details from those nations," the state minister told the committee, noting that external financing was a major obstacle in resuming the programme.

Pasha added that China has always helped Pakistan in dire times, while the $350 billion economy would also secure funds from Saudi Arabia and the United Arab Emirates soon.

The minister...