Pakistan seeks USD 8B+ IMF bailout package

Pakistan seeks USD 8B+ IMF bailout package

VoM News Desk | March 17, 2024 | 11:41 PM IST | Pakistan News, World | Follow on Google News

Pakistan seeks USD 8B+ IMF bailout package

Pakistan seeks USD 8B+ IMF bailout package

Amid economic turmoil, Pakistan plans to formally request a larger and extended bailout package from the International Monetary Fund (IMF) under the Extended Fund Facility (EFF), as reported by The Geo News on Sunday.

Request for Over USD 8 Billion Bailout

Pakistan aims to secure a fresh IMF bailout exceeding USD 8 billion during the upcoming spring meetings of the IMF/World Bank in Washington, DC, from April 15 to 20. The delegation, led by Finance Minister Muhammad Aurangzeb, will advocate for this larger package.

Options for Enhanced Funding

Pakistan may seek an increased quota similar to its 2008 bailout or explore augmentation through climate finance, considering its significant climate challenges in recent years. The country aims to negotiate a comprehensive and substantial funding package to address its economic needs.

The article outlines the ongoing discussions with the IMF, including the completion of the second review under the current standby arrangement (SBA) program and the potential release of the final tranche. It also highlights the expedited timeline for negotiations and the potential implications of stringent IMF conditions, drawing parallels with Egypt’s recent bailout.

Moreover, Pakistan explores the possibility of accessing the Resilience and Sustainability Facility (RSF) to address long-term economic challenges, particularly those related to climate change and pandemic preparedness.

The outcome of these negotiations will significantly impact Pakistan’s economic trajectory and its ability to navigate the ongoing financial crisis.

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