Pakistan is in talks with the International Monetary Fund (IMF) to secure a fresh loan package of USD 6 to USD 8 billion under the Extended Fund Facility (EFF) to address its fiscal challenges and implement crucial reforms. The IMF support team, led by Mission Chief Nathan Porter, has arrived in Pakistan to discuss the terms of the bailout package.
According to IMF’s Communication Director Julie Kozack, the mission team is meeting with Pakistani authorities to lay the foundation for better governance and stronger economic growth that will benefit all Pakistanis. The negotiations aim to address the country’s high fiscal shortfall and stabilize the economy, which narrowly averted default last summer.
The team is expected to stay in Pakistan for more than 10 days, receiving data from different departments and discussing the upcoming budget for the fiscal year 2025 with Ministry of Finance officials. The duration, instrument, and size of the next IMF programme are open to discussion, as reported by The Express Tribune newspaper.
Pakistan completed a short-term USD 3 billion programme with the IMF last month, which helped the country avoid default. However, the country is still facing challenges such as high inflation and a stagnating growth rate. The upcoming IMF bailout package is crucial for Pakistan to address these issues and ensure economic stability in the long run.