Pakistan Seeks $1 Billion from IMF for Economic Support
Formal Request Made Amid Ongoing Financial Challenges
Pakistan is seeking approximately $1 billion in funding from the International Monetary Fund (IMF) to access a facility designed to assist low and middle-income countries in coping with external economic shocks, according to Finance Minister Muhammad Aurangzeb in an interview with Reuters.
“We have formally submitted a request to be considered for this facility,” Aurangzeb stated while attending the IMF/World Bank autumn meetings in Washington.
Last month, the IMF approved a bailout for Pakistan, but additional funding is available through its Resilience and Sustainability Trust (RST).
The country is also negotiating with the Asian Infrastructure Investment Bank for credit support related to a planned Panda bond, with an anticipated initial issuance of $200-250 million.
According to Business Recorder, the finance minister is scheduled to meet with U.S. Assistant Secretary of State for Energy Resources, Geoffrey Ross Pyatt, during his visit to Washington. Their discussions will center on issues within Pakistan’s energy sector.
Recently, U.S. Ambassador Donald Blome met with Finance Minister Aurangzeb to discuss economic issues, including the performance of Pakistan’s energy sector.
Sources indicate that the U.S. envoy requested information on the proposed restructuring of Chinese power sector debts and its potential impact on Pakistan’s economy. In response, Aurangzeb noted that China and Pakistan have engaged consultants to finalize agreeable terms for the debt restructuring in the coming years.
Aurangzeb is also expected to address ongoing concerns regarding five wind power projects established by the U.S. International Development Finance Corporation (DFC), as the two sides have yet to reach a mutually satisfactory resolution.
In a meeting last May, the U.S. ambassador emphasized that the DFC would withhold investments in Pakistan until these wind power project issues were resolved. The Pakistan Embassy in Washington has conveyed to Islamabad that “Washington is serious about resolving these matters” to facilitate future investments in the energy sector.
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