Business Standard - July 15, 2022

There is tacit coordination that the international community will not let cash-strapped Pakistan -- as long as it stays on course -- to become Sri Lanka, a media report said on Friday, days after Islamabad signed a preliminary agreement with the IMF for the release of USD 1.17 billion loan tranche that had been on hold since earlier this year.

The International Monetary Fund on Thursday confirmed that an agreement was reached with Pakistan, which is facing a serious economic crisis since last one year, to restore a stalled loan programme and also increased its size from USD 6 billion to USD 7 billion.

The revival of the IMF's bailout is likely to help the government overcome the economic crisis as the release of installment of loans from the fund will encourage other international financial institutions to engage with Pakistan.

According to The Express Tribune newspaper, background discussions with diplomatic channels have revealed that the international community was standing behind the IMF all the time and did not give any chance to the government to walk away from the talks by not extending any kind of cash assistance to Pakistan.

"All the friends of Pakistan had asked it to work with the IMF and the international community was constantly briefed by the IMF staff about the progress on the programme negotiations," the daily reported, citing diplomatic sources.