IMF prepared to engage with Pakistan for fresh bailout in coming months

IMF prepared to engage with Pakistan for fresh bailout in coming months

VoM News Desk | April 5, 2024 | 08:37 PM IST | Pakistan News, World | Follow on Google News

IMF prepared to engage with Pakistan for fresh bailout in coming months

IMF prepared to engage with Pakistan for fresh bailout in coming months

Islamabad [Pakistan], April 5 (ANI): The International Monetary Fund (IMF) said that they are ready to “engage” with Pakistan on a fresh bailout in the “coming months” to help the country resolve “fiscal and external stability challenges,” reported Geo News. The global lender stated that they are ready to engage in programme discussions in the future.

The IMF’s Communications Director, Julie Kozack, said, “The authorities have expressed interest in a successor IMF-supported programme with the aim of resolving Pakistan’s fiscal and external stability challenges and laying the foundation for inclusive growth. And, of course, we stand ready to engage in programme discussions in the coming months.”Responding to a question about the Standby Arrangement (SBA) and whether Pakistan was out of the woods economically, Kozack further spoke about the fresh bailout programme, reported Geo News.

The IMF communications director shared that the Executive Board meeting of the lender will take place at the end of this month to approve the disbursement of the remaining USD 1.1 billion of the SBA following the staff-level agreement between Pakistan and the IMF.”The staff-level agreement recognises the strong programme implementation by the State Bank of Pakistan and the caretaker government in recent months, as well as the new government’s intentions for ongoing policy and reform efforts to move Pakistan from stabilisation to a strong and sustainable recovery,” Kozack said.

The IMF official noted that there has been an improvement in Pakistan’s “economic and financial” situation since the completion of the first review of the SBA, reported Geo News. “Growth and confidence are continuing to recover,” Kozack said.She added that the IMF will release growth forecasts in the coming months as part of the World Economic Outlook.On March 20, Pakistan and the IMF hit a staff-level agreement on the second and final review under the USD 3 billion SBA, paving the way for the release of the last tranche from the lender.Following the deal, PM Shehbaz Sharif highlighted that the new IMF programme was likely to be continued for three years, according to Geo News.

“A new tranche of loans is likely to be received from the IMF in a few days, however, we would need another programme,” Shehbaz Sharif said while addressing a session of the Special Investment Facilitation Council’s (SIFC) apex committee.’

Last week, in continuation of the PM’s directives, Finance Minister Muhammad Aurangzeb said that a meeting to discuss the new loan programme with the IMF was slated for April 14 and 15 in Washington, as reported by Geo News. While speaking at the Pakistan Stock Exchange (PSX) in Karachi, the minister said that the fresh programme’s features would be discussed in the forum, whereas detailed talks would be held later in Pakistan. (ANI)

(Except for the headline, this story has not been edited by VoM News staff and is published from syndicated feed)

VoM News Desk

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