Washington/Islamabad Pakistan has made a formal request to the IMF seeking the next bailout package of US$6 to 8 billion with the possibility of an increase through climate financing, a media report said on Saturday.
Cash-strapped Pakistan also requested to send an International Monetary Fund (IMF) review mission next month to firm up the details of the next bailout package for three years under the Extended Fund Facility (EFF).
However, the exact size and timeframe of the new package will be determined only after a consensus is reached on the key outlines of the next program in May 2024, Geo News reported from Washington.
A high-level Pakistani delegation led by Finance Minister Muhammad Aurangzeb is currently visiting Washington to attend the annual spring meetings of the IMF/World Bank.
Although Pakistani officials are painting a rosy picture of the economy, the IMF in its latest Regional Economic Outlook (REO) for the Middle East and Central Asia (ME&CA) said the cash-strapped country's external buffers have deteriorated. , which mostly reflects ongoing debt service., including Eurobond repayments.
It added, "Where inflation pressures persist, monetary policy should remain tight following a data-dependent approach (Egypt, Kazakhstan, Pakistan, Tunisia Uzbekistan), while considering the risks of a reversal in inflation developments." Should be monitored closely."
After a contraction in 2023, growth in Pakistan is projected to accelerate to 2 percent in 2024, supported by continued positive base effects in the agriculture and textile sectors.
Meanwhile, Finance Minister Aurangzeb told the World Bank in Washington that with full implementation of the reform agenda in key sectors, Pakistan's economy has the potential to grow to US$3 trillion by 2047.
Pakistan's current US$3 billion arrangement with the IMF will expire at the end of April and the government is seeking a longer and bigger loan to help bring macroeconomic stability and an umbrella under which the country can implement much-needed structural reforms. can do.The IMF, however, stressed that prioritizing reforms to revive Pakistan's economy is more important than the size of the new loan package under negotiation.
Cash-strapped Pakistan also requested to send an International Monetary Fund (IMF) review mission next month to firm up the details of the next bailout package for three years under the Extended Fund Facility (EFF).
However, the exact size and timeframe of the new package will be determined only after a consensus is reached on the key outlines of the next program in May 2024, Geo News reported from Washington.
A high-level Pakistani delegation led by Finance Minister Muhammad Aurangzeb is currently visiting Washington to attend the annual spring meetings of the IMF/World Bank.
Although Pakistani officials are painting a rosy picture of the economy, the IMF in its latest Regional Economic Outlook (REO) for the Middle East and Central Asia (ME&CA) said the cash-strapped country's external buffers have deteriorated. , which mostly reflects ongoing debt service., including Eurobond repayments.
It added, "Where inflation pressures persist, monetary policy should remain tight following a data-dependent approach (Egypt, Kazakhstan, Pakistan, Tunisia Uzbekistan), while considering the risks of a reversal in inflation developments." Should be monitored closely."
After a contraction in 2023, growth in Pakistan is projected to accelerate to 2 percent in 2024, supported by continued positive base effects in the agriculture and textile sectors.
Meanwhile, Finance Minister Aurangzeb told the World Bank in Washington that with full implementation of the reform agenda in key sectors, Pakistan's economy has the potential to grow to US$3 trillion by 2047.
Pakistan's current US$3 billion arrangement with the IMF will expire at the end of April and the government is seeking a longer and bigger loan to help bring macroeconomic stability and an umbrella under which the country can implement much-needed structural reforms. can do.The IMF, however, stressed that prioritizing reforms to revive Pakistan's economy is more important than the size of the new loan package under negotiation.
