A team from the International Monetary Fund (IMF) arrived in Pakistan recently to engage in discussions regarding the country’s request for an expanded bailout package under the Extended Fund Facility (EFF). According to reports by Geo News, the IMF team’s visit comes as Pakistan seeks a larger and more extended financial assistance program.
The IMF support team, anticipated to hold talks with Pakistan’s financial authorities, is expected to delve into the initial phase of negotiations for the next long-term loan program. Sources mentioned that the team’s arrival signifies the commencement of discussions, with further dialogues to be conducted upon the arrival of the full IMF mission on May 16.
During their stay, the IMF team is slated to gather essential data from various departments and engage in discussions with the Pakistan Ministry of Finance regarding the upcoming 2025 budget. The duration of their visit is projected to span over 10 days, encompassing detailed deliberations on Pakistan’s economic policies and financial outlook.
Pakistan’s request for a new bailout package, ranging between USD 6 to USD 8 billion over three years under the EFF, reflects the country’s ongoing efforts to stabilize its economy and address financial challenges. Notably, Pakistan recently concluded a short-term program worth USD 3 billion, which played a crucial role in averting potential default situations.
In related developments, the IMF’s Executive Board recently completed the second review under the stand-by arrangement and approved disbursements for Pakistan. The State Bank of Pakistan received USD 1.1 billion from the IMF, underscoring the significant financial assistance extended by international lenders.
Amidst these financial discussions, the Pakistani government has made decisions to curtail subsidies, including those provided to government officials. Reports indicate the discontinuation of subsidies for Customs officers, including subsidized house rent and medical charges, aligning with the government’s efforts to navigate economic reforms and meet IMF conditions.