Pakistani Delegation Embarks on IMF Talks for New Loan Program

Pakistani Delegation Embarks on IMF Talks for New Loan Program

Islamabad, April 14, 2024 – A delegation led by Finance Minister Muhammad Aurangzeb set off for Washington on Sunday to engage in discussions with the International Monetary Fund (IMF) regarding a new loan program aimed at bolstering Pakistan’s economic stability.

Media outlets reported that negotiations between Pakistan and the IMF are scheduled to take place next week, during which Pakistani officials will request the IMF for an economic bailout package to address the country’s financial challenges.

The talks for the new loan program will commence following an executive board meeting, with the finance minister also expected to hold discussions with the IMF managing director in Washington.

In addition to meetings with the IMF, the Pakistani delegation is slated to engage with officials from the World Bank and other institutions during their visit.

Before departing for the United States, Finance Minister Aurangzeb briefed Prime Minister Shehbaz Sharif on April 12 about his discussions with officials from the IMF, World Bank, and other institutions. Matters pertaining to the overall economic situation of the country were reportedly deliberated upon during the meeting, as stated by the Prime Minister’s Office.

IMF Chief Kristalina Georgieva confirmed on April 11 that Pakistan was in dialogue with the Fund regarding a potential follow-up program to its nine-month, $3 billion Stand-By Arrangement (SBA). Georgieva highlighted that Pakistan had made progress in completing its existing program with the IMF, with signs of improved economic performance and reserve accumulation.

Georgieva acknowledged Pakistan’s commitment to continue on this positive trajectory but flagged important issues that the country still needs to address. She emphasized the necessity for Pakistan to resolve these issues as it seeks potential follow-up assistance from the IMF.

The delegation’s discussions with the IMF hold significant implications for Pakistan’s economic future. The outcome of these talks will determine the nature and extent of financial support that Pakistan may receive to address its economic challenges and pursue sustainable growth strategies.