Pakistan is seeking a fresh loan program from the International Monetary Fund (IMF), aiming for a substantial amount between $7 to $8 billion. According to source, Pakistan intends to initiate discussions for a new three-year loan program with the IMF in the upcoming week.
Negotiations with the IMF are expected to include discussions on climate financing, commencing after the IMF’s executive board meeting.
Sources indicate that in order to secure the new IMF loan program, Pakistan must adhere to certain conditions set by the international lender. These conditions include implementing the FY2024-25 budget in line with IMF requirements, which may involve raising gas and electricity tariffs, implementing cost recovery reforms, and taking steps to expand the tax base.
Furthermore, Pakistan needs to provide assurance to the IMF regarding external financing to qualify for the new loan program.
Sources familiar with the matter also mention that the IMF has dismissed reservations raised by Pakistan Tehreek-e-Insaf (PTI) and remains committed to engaging in discussions with the government elected for a five-year term.
Earlier, Federal Minister for Finance and Revenue, Muhammad Aurangzeb, emphasized the necessity of a new IMF program, expressing hope for a staff-level agreement (SLA) by the end of the next fiscal year.
Speaking at a ceremony at the Pakistan Stock Exchange (PSX) in Karachi, the finance minister announced plans for a meeting with the International Monetary Fund (IMF) scheduled for April 14 and 15 in Washington.
