Cash-strapped Pakistan makes formal request to International Monetary Fund for another bailout : The Tribune India

Join Whatsapp Channel

Cash-strapped Pakistan makes formal request to International Monetary Fund for another bailout

A high-level Pakistani delegation led by Finance Minister Muhammad Aurangzeb is currently visiting Washington to attend the annual spring meetings of the IMF

Cash-strapped Pakistan makes formal request to International Monetary Fund for another bailout

Pakistan also requested to dispatch the International Monetary Fund review mission next month to firm up details of the next bailout package for three years under the Extended Fund Facility. Representative image/File photo



PTI

Washington/Islamabad, April 20

Pakistan has made a formal request to IMF for seeking the next bailout package in the range of USD 6 to USD 8 billion with the possibility of augmentation through climate financing, a media report said on Saturday.

Cash-strapped Pakistan also requested to dispatch the International Monetary Fund (IMF) review mission next month to firm up 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 only be determined after evolving consensus on the major contours of the next programme 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 authorities are pitching a rosy picture of the economy, the IMF in its latest Regional Economic Outlook (REO) released by Middle East and Central Asia (ME and CA) said the cash-strapped country's external buffers deteriorated, mostly reflecting ongoing debt service, including Eurobond repayments.

“Where inflationary pressures persist, monetary policy should remain tight and follow a data-dependent approach (Egypt, Kazakhstan, Pakistan, Tunisia, Uzbekistan), while closely monitoring risks of a reversal of inflation developments,” it added.

After contracting in 2023, growth in Pakistan is projected to rebound to 2 per cent in 2024, supported by continuing positive base effects in the agriculture and textile sectors.

Meanwhile, Finance Minister Aurangzeb told the World Bank in Washington that with the reform agenda fully implemented in key areas, Pakistan's economy has the potential to grow to USD 3 trillion by 2047.

Pakistan’s current USD 3 billion arrangement with the IMF runs out in late April and the government is seeking a longer and bigger loan to help bring permanence to macroeconomic stability and an umbrella under which the country can execute much-needed structural reforms.

The IMF however emphasised that prioritising reforms to revitalise the Pakistani economy outweighs the size of the new loan package being negotiated.

#Pakistan #United States of America USA #Washington


Top News

Punjab police raid houses, hideouts of farm leaders ahead of PM Modi’s rallies in Gurdaspur, Jalandhar

Punjab Police arrest farm leaders hours before PM Modi’s rallies in Gurdaspur, Jalandhar

Many farm leaders move from their homes in anticipation earl...

Lok Sabha election 2024: PM Modi to address two poll rallies in Himachal Pradesh today

Lok Sabha election 2024: PM Modi to address two poll rallies in Himachal Pradesh today

The state goes to polls in 7th phase of Lok Sabha elections ...

Kyrgyzstan violence: Despite safety assurance, majority of Indian students heading back home from Bishkek

Kyrgyzstan violence: Despite safety assurance, majority of Indian students heading back home from Bishkek

A flight carrying Indian students is expected to land in Del...


Cities

View All