An International Monetary Fund (IMF) team landed in Pakistan on Friday to engage in discussions about the nation’s request for an extended and larger bailout package under the Extended Fund Facility (EFF), as reported by Geo News. The global lender’s support team is anticipated to commence discussions on the initial phase of the forthcoming long-term loan program with Pakistan’s financial authorities, according to insider sources.
It was further noted that the preliminary team has already arrived in Pakistan for negotiations, while the full IMF mission is scheduled to arrive on the night of May 16, as per Geo News. The team is slated to gather data from various departments and hold deliberations with the Pakistan Ministry of Finance regarding the upcoming 2025 budget. As per sources, the IMF delegation is expected to remain in Pakistan for a period exceeding 10 days.
Pakistan has requested a new bailout package ranging from USD 6 to USD 8 billion for a three-year period under the EFF, with the possibility of augmentation through climate financing, as reported by The News International last month. Last month, Pakistan successfully completed a USD 3 billion short-term program, averting default. The IMF Executive Board conducted the second review under the stand-by arrangement during its meeting on April 29 and sanctioned disbursements for Pakistan. On April 30, the State Bank of Pakistan (SBP) received USD 1.1 billion from the IMF.
Additionally, in anticipation of the IMF mission’s visit regarding a new loan package, the federal government recently decided to cease providing subsidies to government officials. Media reports indicate that subsidies for Customs officers from grades 17 to 22 have been discontinued, including subsidized house rent and medical charges, as reported by Samaa TV