IMF Mission to Visit Pakistan This Month for Discussions on New Loan

The International Monetary Fund (IMF) is set to send a mission to Pakistan this month to discuss a new programme as the country gears up for its annual budget-making process for the next financial year. Pakistan recently completed a short-term $3 billion programme that helped prevent a sovereign default, but Prime Minister Shehbaz Sharif’s government is now pushing for a fresh, longer-term programme.

The IMF stated, “A mission is expected to visit Pakistan in May to discuss the FY25 budget, policies, and reforms under a potential new programme for the welfare of all Pakistanis.” The visit comes as Pakistan prepares to present its budget for fiscal year 2025 before June 30.

While the IMF did not provide specific details on the visit, it emphasized the importance of accelerating reforms over the size of the programme. Pakistan’s economy, which narrowly avoided default last summer, has stabilized after the completion of the last IMF programme. Inflation has decreased to around 17% in April from a high of 38% last May.

Finance Minister Muhammad Aurangzeb expressed hope for reaching an agreement on a new IMF loan in May. Pakistan is expected to seek at least $6 billion and request additional financing from the Fund under the Resilience and Sustainability Trust.

As Pakistan continues to address its fiscal challenges and stabilize its economy, the upcoming discussions with the IMF will be crucial in shaping the country’s financial future.