An International Monetary Fund (IMF) team landed in Pakistan on Friday, commencing discussions on the nation’s request for an extended and augmented bailout package under the Extended Fund Facility (EFF).
Sources familiar with the matter disclosed that a delegation from the global financial institution will engage with Pakistan’s financial authorities to deliberate the initial phase of the forthcoming long-term loan program.
The advance party has already touched down in Pakistan for preliminary talks, while the full IMF mission is scheduled to arrive on the night of May 16.
During their stay, the team will gather data from various departments and engage in discussions, including deliberations on the upcoming 2025 budget with officials from the Ministry of Finance.
Sources further disclosed that the IMF team plans to stay in Pakistan for over 10 days, indicating the depth and scope of the negotiations.
Pakistan’s request for a bailout package ranging from $6 to $8 billion over a three-year period under the EFF, potentially augmented through climate financing, was previously reported by The News.
Recent reports from Reuters suggest that the mission’s agenda includes discussions on the fiscal year 2025 budget, policies, and reforms, aimed at bolstering the welfare of the Pakistani populace.
In a statement, the IMF emphasized the significance of expediting reforms, prioritizing them over the size of the program, which will be tailored to the country’s reform package and balance of payments requirements.
Finance Minister Muhammad Aurangzeb, in conversation with Reuters, expressed optimism about reaching an agreement on the new IMF loan in May. While refraining from specifying the desired program size, it’s anticipated that Pakistan will seek a minimum of $6 billion.
Aurangzeb hinted at Pakistan’s intention to request additional financing from the IMF under the Resilience and Sustainability Trust once the agreement on the IMF loan is reached.
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