According to sources within the finance ministry, Pakistan is poised to enter into a new loan agreement with the International Monetary Fund (IMF) following the conclusion of its current program.
The new agreement is expected to take the form of an Extended Fund Facility program spanning three years. Ahead of signing the agreement, Islamabad will present budget proposals for the fiscal year 2024-25 to the IMF.
Sources indicate that as part of the agreement, Pakistan will commit to further increasing electricity and gas prices while reducing subsidies on the economy. These measures are intended to alleviate the burden on the economy and meet IMF conditions for the new loan program.
Finance ministry sources suggest that the terms of the new IMF loan program are anticipated to be more stringent compared to the current Standby Arrangement program.
