Pakistan requests 24th ‘extended and increased’ bailout package from IMF | Global Updates

The International Monetary Fund (IMF) has confirmed that talks are underway with Pakistan for the 24th ‘longer and larger’ bailout program under the Extended Fund Facility (EFF). According to ARY News, the negotiations are still ongoing, as stated by IMF Communication Director Julie Kozack during a press briefing.

Kozack mentioned that a mission team led by Nathan Porter is currently meeting with Pakistani authorities to discuss the next phase of engagement. The IMF Executive Board recently completed the second review of the stand-by arrangement for Pakistan, allowing a disbursement of approximately USD 1.1 billion.

Pakistan is seeking a bailout package ranging from USD 6 billion to USD 8 billion from the IMF to address its financial crisis. The country has been facing economic challenges, including a failed tax amnesty scheme proposed by the IMF.

In response to the situation, the IMF has urged the Federal Board of Revenue (FBR) to revoke discretionary powers held by the Board and the cabinet in granting tax incentives. Additionally, the IMF calls for amendments in tax laws related to NGOs, charitable organizations, and taxed pensioners. The IMF also highlights the adverse effects of special tax regimes in the construction sector and advocates for their removal to enhance tax efficiency.

The ongoing discussions between Pakistan and the IMF are crucial for the country’s economic stability and future growth. Stay tuned for more updates on this developing story.