WASHINGTON: An International Monetary Fund (IMF) mission and Pakistan have made significant progress in negotiations towards securing a staff-level agreement for an extended fund facility.
Following the completion of a short-term $3 billion program, which prevented a sovereign debt default last month, discussions were initiated for a new loan program. Led by mission chief Nathan Porter, an IMF team concluded talks with Pakistani authorities on Thursday after commencing discussions on May 13.
The IMF stated that ongoing policy discussions will continue virtually in the coming days to finalize various aspects, including the necessary financial support from the IMF and Pakistan’s bilateral and multilateral partners to bolster the reform efforts of the authorities.
It’s anticipated that Pakistan will request at least $6 billion under the new program and seek additional financing from the IMF via the Resilience and Sustainability Trust. Prior to the discussions, the IMF had highlighted significant downside risks for the Pakistani economy.
Porter emphasized that the reform program aims to transition Pakistan from economic stabilization to robust, inclusive, and resilient growth.
