ISLAMABAD / WASHINGTON: In a major development on the new loan program between Pakistan and the International Monetary Fund (IMF), the IMF has approved Pakistan’s request for a new bailout package of $6-8 billion.
According to sources, the new loan program from the IMF is likely to be for a period of more than three years. The proposed bailout package includes an expansionary fund facility and funding for climate financing. The IMF delegation will arrive in Pakistan next month for negotiations on the new loan program, the negotiations will be on the new loan program and the budget proposal for the next financial year.
Pakistan made 2 requests to the IMF, the Extended Fund Facility request was approved, the second request will be reviewed by the mission during its visit to Pakistan, under the Extended Fund Facility, Pakistan will be able to borrow about $6 billion.
On the other hand, during the meeting with the World Bank’s Regional Vice President for South Asia, Martin Riser, the Finance Minister described the finalization of the Country Partnership Framework as satisfactory.
On the other hand, Federal Finance Minister Muhammad Aurangzeb in Washington has said in an interview to the Turkish TV channel (TRT World) that Pakistan wants a big and long-term bailout program of the IMF. Discussions are going on, this program is not of IMF but Pakistan program which is being supported, supported and financed by IMF. Real estate, property construction and other sectors are included.
Later, Federal Finance Minister Muhammad Aurangzeb was met by President of Asia Infrastructure Investment Bank (AIIB) Jin Lee Kun and discussed the possibilities of promoting mutual cooperation in the development of basic sector infrastructure including Pakistan’s economic priorities.
The finance minister told Jin Liqun that Pakistan is willing to go into a bigger and broader program with the IMF to further consolidate the economic growth achieved under the SBA. He said about expansion of tax scope, development of energy sector and reforms for government-owned enterprises that reforms in these sectors are among the top priorities of the government.
Later, the Finance Minister met Mr. Martin Riser, Regional Vice President of the World Bank for South Asia. On the occasion of the meeting, the Finance Minister expressed satisfaction that the new Country Partnership Framework (CFF) will be finalized soon. He highlighted the government’s reform priorities in the areas of energy, tax reforms and SOEs.
On the other hand, the economic review of Pakistan was included in the agenda of the IMF Executive Board meeting.
Moreover, the Finance Minister has met with the President of the Asian Infrastructure Investment Bank, Jean Lecon, in Washington.
Sources in the Ministry of Finance say that President Asian Infrastructure Investment Bank has promised to provide 500 million dollars to Pakistan.
