Pakistan makes formal request for IMF package

Pakistan has made a formal request to International Monetary Fund (IMF) for seeking the next bailout package in the range of $6 to $8 billion under the Extended Fund Facility (EFF).

According to sources, Pakistan has submitted two applications seeking assistance from the International Monetary Fund (IMF) under two heads - extended fund facility (EFF) and additional climate financing.

The international lender has reportedly approved Pakistan’s request for to $8 billion loan under Extended Fund Facility (EFF).

Islamabad is currently awaiting the release of $1.1 billion under the stand-by arrangement (SBA) which was inked during the last days of the PDM-led coalition government and remained effective from July 1, 2023 to March 31, 2024.

Pakistan hopes to agree the contours of a new International Monetary Fund loan in May, Finance Minister Muhammad Aurangzeb said, and has kicked off talks with ratings agencies to lay the groundwork for a return to international debt markets.

“We expect the IMF mission to be in Islamabad around the middle of May - and that is when some of these contours will start developing,” said Aurangzeb, who met with the Fund’s Managing Director Kristalina Georgieva on Wednesday during the International Monetary Fund and World Bank Spring Meetings.

He declined to outline what size programme the government hoped to secure, though Pakistan is expected to seek, opens new tab at least $6 billion.

News Network International