Islamabad: According to a statement from his office, Pakistan’s Prime Minister Shehbaz Sharif engaged in discussions regarding a new loan program with Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), during their meeting at the World Economic Forum in Riyadh.
The purpose of the meeting was to explore the possibility of a larger, extended financial arrangement with the IMF as Pakistan’s current $3 billion standby arrangement is set to expire soon.
The statement from Shehbaz Sharif’s office highlighted the importance of entering into another IMF program to maintain the positive economic momentum achieved in the past year.
The IMF executive board is scheduled to convene to consider the approval of $1.1 billion in funding for Pakistan, which constitutes the final tranche of the existing standby arrangement.
Pakistan’s Finance Minister, Muhammad Aurangzeb, expressed optimism about securing a staff-level agreement on the new program by early July, emphasizing the country’s commitment to achieving macroeconomic stability and implementing necessary structural reforms.
Although specific details regarding the size and duration of the new loan program were not disclosed, discussions between the IMF and the Pakistani government are ongoing.
If finalized, this would mark Pakistan’s 24th IMF bailout, underscoring the persistent challenges faced by the country’s $350 billion economy, particularly in managing its balance of payments.
Pakistan’s finance ministry projects a modest growth rate of 2.6% for the current fiscal year, with a slight decrease in average inflation compared to the previous year.
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