Dar-Blome meeting seen as positive development

The financial sector saw Finance Minister Ishaq Dar’s meeting with US ambassador Donald Blome in Islamabad on Wednesday as a positive development while the currency markets indicated their satisfaction with a calm day for the exchange regime. The meeting has revived hopes for a breakthrough in negotiations with the International Monetary Fund for the release of $1.2 billion tranche. A statement issued by the Finance Division said Mr Blome expressed confidence in the policies and programmes of the government for economic sustainability and socioeconomic uplift of the masses. Mr Dar told the US envoy that the budgetary measures for 2023-24 were aimed at reducing the fiscal gap in order to meet national and international obligations. He informed the US diplomat about the progress on ongoing talks with the IMF and stated that the government is committed to completing the programme. However, a statement by the finance division did not mention any US support for IMF deal, but the financial sector considered the meeting a move by the government to get help for concluding the IMF deal before June 30. The government has been under serious criticism by the IMF over data for the budget FY24. The government is willing to catch the outgoing $2.2 billion of IMF loan before it expires on June 30.