IMF agrees to add $2bn to ongoing program

ISLAMABAD/WASHINGTON: To help Pakistan’s balance of payments and foreign exchange reserves, the International Monetary Fund (IMF) has decided to increase the size of its $6 billion loan program by $2 billion and prolong it for another year.

Pakistan has requested the IMF to increase its bailout package from $3 billion to $5 billion, according to Finance Minister Miftah Ismail.

The minister told a press conference at the Pakistan Embassy in Washington that the IMF will send a staff mission to Pakistan to discuss the proposal. On Tuesday, technical discussions on Pakistan’s proposal are anticipated to begin.

I thank the IMF management & staff for their cooperation in reviving a fiscally responsible economic development strategy for Pak. I also thank my colleagues MoS Dr Ayesha Pasha, Gov Dr Reza Baqir, FS Hamid Sheikh, DGov Murtaza Syed & AS Awais Sumra for their hard work. https://t.co/uuRdJwOs5w
— Miftah Ismail (@MiftahIsmail) April 24, 2022

Mr. Ismail stated, “We expect that the staff-level agreement on the improved program will be completed shortly.” He could not predict if the next $1 billion tranches would reach Pakistan before the next budget.