[6] Pakistan is facing a "huge external financing gap" of $4 billion, with China, Saudi Arabia, and the UAE expected to provide additional support.
The IMF is seeking to fund its program and secure $7 billion for debt repayment, current account deficit financing, and increasing foreign exchange reserves.
The talks between Pakistan and the IMF were delayed due to concerns over the credibility of the government's assurances and the reliability of foreign loans.
Despite some agreement on reform actions and measures, there are still outstanding issues and the IMF has expressed concerns about the government's ability to fulfill past commitments.
[7] (The now former) Foreign Minister Bilawal Bhutto Zardari of Pakistan asked the International Monetary Fund to soften the conditions of its bailout package to help the country protect flood victims from rising prices.
The IMF demand was made as the government shared its revised macroeconomic projections showing inflation rising to 29% and economic growth rate slowing to 1.5%, which will lead to higher unemployment and poverty in the country [9] and debt-driven rising prices, food insecurity, and a growing debt burden add to Pakistan's other challenges and no doubt Inflation is running above 38 percent annually.
[10] As Pakistan's rupee experiences a significant depreciation and its foreign exchange reserves dwindle, the nation is facing challenges in importing crucial goods such as food, which has even resulted in tragic stampedes at distribution centers.