Pakistan to seek at least $6 bln in new IMF loan program: Bloomberg
NEW YORK: The International Monetary Fund (IMF) has expressed willingness to work with the new Pakistani government while ignoring Pakistan Tehreek-e-Insaf (PTI) founder Imran Khan’s demand from the lender to hold an audit of the election results before approving any new loan for Islamabad.
In a media briefing, IMF Director of Communication Julie Kozek expressed her satisfaction with the caretaker government’s working saying that it maintained economic stability, controlled inflation and increased foreign exchange by following a tight monetary policy.
She said that on January 11, the IMF Executive Board approved the first review of the Standby Arrangement under which $1.9 billion were released to Pakistan.
Stressing the IMF’s commitment to safeguarding vulnerable sectors, Ms Kozek underscored the programme’s dual focus on economic stabilisation and protecting the most susceptible to financial shocks.
She said that the IMF wanted to ensure the protection of the poor in Pakistan and ready to work with the newly elected government for achieving economic goals.
She expressed the hope that the newly elected government would adopt a strict monetary policy to reduce inflation and work for the prosperity of the common people.
She refused to offer comment on the letter written by the PTI founder saying “IMF does not issue statements on internal political matters.”
Bloomberg report
According to a report by Bloomberg, Pakistan is gearing up to secure a substantial loan of at least $6 billion from the IMF to alleviate the burden of looming debt repayments
With debt obligations looming large this year, the South Asian nation aims to negotiate an Extended Fund Facility with the IMF, as revealed by a Pakistani official. Talks with the global lender are expected to commence in the coming months, potentially as early as March or April.
Imran to push for IMF aid suspension over alleged ‘election rigging
The urgency for financial assistance stems from the impending expiration of a short-term IMF bailout programme, which helped Pakistan stave off default last summer. However, with the programme set to conclude next month, the onus falls on the incoming government to navigate a sustainable, long-term arrangement to stabilize the $350-billion economy.
Prior to the previous bailout, Pakistan had to enact a series of stringent measures mandated by the IMF, including budget revisions, a hike in benchmark interest rates, and adjustments to electricity and natural gas prices. These measures were aimed at addressing economic imbalances and ensuring fiscal discipline.
