ISLAMABAD: Pakistan is engaging in talks with the International Monetary Fund (IMF) regarding a fresh multi-billion dollar loan arrangement to bolster its economic reform endeavors, according to Finance Minister Muhammad Aurangzeb.
He mentioned that the country is inclined towards requesting a three-year program at minimum.
Aurangzeb, during his visit to Washington for the spring meetings organized by the IMF and World Bank, aimed to address two key objectives: aiding countries in combating climate change and supporting the world’s most indebted nations.
These meetings, gathering central bankers, finance and development ministers, academics, and representatives from various sectors, commence with the release of the IMF’s updated World Economic Outlook.
Earlier this year, Pakistan held elections marked by allegations of rigging, resulting in PTI founder Imran Khan’s imprisonment and disqualification from contesting, along with a crackdown on his party. The ensuing coalition, led by Prime Minister Shehbaz Sharif, is tasked with implementing unpopular austerity measures to revive the economy.
Aurangzeb expressed the likelihood of seeking a three-year program to execute structural reforms. Negotiations for a new IMF loan program, worth billions, are underway as Pakistan nears the conclusion of its nine-month, $3 billion loan program with the IMF, primarily aimed at addressing a balance-of-payments crisis.
Aurangzeb, noting improved market sentiment, emphasized the initiation of discussions this week to secure a larger and extended program with the IMF. While the IMF remains focused on completing the current Stand-by Agreement program, discussions regarding a successor program have commenced, reflecting Pakistan’s expressed interest in further collaboration.
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