ISLAMABAD: Pakistan has requested the International Monetary Fund (IMF) to extend the package and provide $8 billion in loans.
Pakistan will almost fully meet its remaining maximum quota under the new Extended Fund Facility. The amount is about $2 billion more than the global lender has offered so far.
With the implementation of several earlier measures, the option remains to negotiate the size of the new bailout package and any new debt-related issues by the three traditional bilateral creditors, the sources said.
According to sources, Pakistani authorities have sought about $8 billion under the EFF. In addition, the government may receive any financing under the Resilience and Sustainability Facility (RSF). He said that the IMF is willing to sign a $6 billion deal subject to the fulfillment of all conditions.
Pakistan’s quota in the IMF is 2.03 billion Special Drawing Rights (SDRs) or $2.7 billion. A country can get maximum quota of 435%. Under this, Pakistan can get $11.7 billion, but Pakistan has already received $3.3 billion from the IMF under previous deals and its remaining quota is about $8.4 billion.
According to the sources, the Ministry of Finance wanted to get almost the entire quota, but the IMF has indicated to give 6 billion dollars so far. Pakistan is also likely to be allowed to lend more, along with stricter conditions. Earlier, the IMF had set the conditions for the staff visit to Pakistan from May 10 to May 23.
According to sources, one of the conditions of the new loan program is that additional revenue measures equal to 1.6 percent of GDP or 2 trillion rupees will be taken.
A finance ministry spokesman did not respond to a request for comment on the size of next year’s bailout package, but a senior ministry official said the country requested an $8 billion deal and the final decision rests with the IMF. Administration will do.
A finance ministry official has said that if Pakistan gets the maximum share of the remaining quota, it will have to pay an additional surcharge of 2 percent on the standard interest rate applicable to the EFF programme.
A cabinet member told The Express Tribune on condition of anonymity that the PML-N government has taken a principled decision that it will no longer seek any fresh cash deposit loans from traditional bilateral lenders. .
Prime Minister Shehbaz Sharif also publicly said in the UAE last month that Pakistan will no longer seek bilateral loans and has broken the “begging bowl”.
The IMF said in a press release that it will present the findings of the mission to the IMF Board for discussion and decision.
It may be recalled that during the first briefing to the Pakistan People’s Party leadership on IMF conditions, Finance Minister Muhammad Aurangzeb had claimed that prior approval of the board would not be required for signing the staff level agreement.
Sources say that the IMF has also imposed a condition that the four presidential ordinances issued in December under the last $3 billion IMF program should now be approved by the parliament. These laws were designed to improve governance in four government agencies.
Pakistan will need to seek parliamentary approval of the National Highway Authority (Amendment) Ordinance 2023, Pakistan Postal Services Management Board (Amendment) Ordinance 2023, Pakistan National Shipping Corporation (Amendment) Ordinance 2023 and Pakistan Broadcasting Corporation Ordinance 2023 (Amendment). .
It should be noted that the maximum age of the ordinance is eight months. The amendments were made to bring these entities in line with the State-Owned Enterprises (Governance and Operations) Act 2023 enacted in January.
