Pakistan aims to secure a new loan program from the International Monetary Fund (IMF), which will range between $7 and $8 billion.
Sources indicate that Pakistan intends to seek a three-year loan program, ranging between $7 and $8 billion, from the IMF shortly. The IMF has shown openness to exploring climate financing options in its forthcoming discussions with Pakistan, which are set to commence following the executive board’s meeting.
For the loan to be approved, Pakistan must align its FY2024-25 budget with the IMF’s stipulations. These include raising gas and electricity tariffs, implementing cost recovery reforms, and expanding the tax base.
For Pakistan to secure this loan, obtaining guarantees of external financing from the IMF is crucial. Meanwhile, despite reservations from Pakistan Tehreek-e-Insaf, the IMF has confirmed its willingness to proceed with discussions with the government’s current five-year term.
Finance and Revenue Federal Minister Muhammad Aurangzeb highlighted the necessity of a new IMF program and anticipates a staff-level agreement by the end of the next fiscal year.
He announced upcoming discussions with the IMF on April 14 and 15 in Washington, addressing the business community at the Pakistan Stock Exchange (PSX) Karachi Gong Ceremony.
, aiming for $7 to $8 billion. The discussions will include climate financing and require Pakistan to meet specific fiscal reforms){kind=link}